Preamble

The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.

PRIVATE BUSINESS.

Private Bills [Lords] (Standing Orders not previously inquired into complied with),—

Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That in the case of the following Bills, originating in the Lords, and referred on the First Reading thereof, the Standing Orders not previously inquired into which are applicable thereto, have been complied with, namely,—

West Gloucestershire Water Bill [Lords].

Birmingham United Hospital Bill [Lords].

Newport Extension Bill [Lords].

Bills to be read a Second time.

Provisional Order Bills (No Standing Orders applicable),—

Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That in the case of the following Bill, referred on the First Reading thereof, no Standing Orders are applicable, namely,—

Ministry of Health Provisional Order (Shipley) Bill.

Bill to be read a Second time To-morrow.

Private Bill Petitions [Lords] (Standing Orders not complied with),—

Mr. SPEAKER laid upon the Table Reports from one of the Examiners of Petitions for Private Bills, That in the case of the Petitions for the following Bills, originating in the Lords, the Standing Orders have not been complied with, namely,—

Dartmouth Corporation [Lords].

Ramsgate Corporation [Lords].

Reports referred to the Select Committee on Standing Orders.

Private Bills [Lords] (Petition for additional Provision) (Standing Orders not complied with),—

Mr. SPEAKER laid upon the Table Report from one of the Examiners of
Petitions for Private Bills, That in the case of the Petition for additional Provision in the following Bill, originating in the Lords, the Standing Orders have not been complied with, namely,—

North Lindsey Water Bill [Lords].

Report referred to the Select Committee on Standing Orders.

Oral Answers to Questions — TRADE AND COMMERCE.

TRADE AGREEMENTS AND NEGOTIATIONS.

Captain ERSKINE-BOLST: 1.
asked the President of the Board of Trade if his attention has been called to the fact that the trade commercial negotiations with Japan are to be complicated by the introduction of political proposals; and whether he proposes, so far as this country is concerned, to keep these negotiations with Japan on a purely trade basis?

The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Dr. Burgin): I would refer my hon. and gallant Friend to the reply given yesterday by my right hon. Friend the Secretary of State for Foreign Affairs to the hon. Member for Walthamstow, West (Mr. McEntee).

Mrs. TATE: 2.
asked the President of the Board of Trade whether, in considering any future agreements with foreign countries, he will make provision that any such agreements do not extend beyond the date of the expiration of the Ottawa Agreements Act, in order that the Government of that time may not be prejudiced when negotiating alterations or revisions of those agreements?

Dr. BURGIN: My hon. Friend's suggestion will be borne in mind.

Mr. HALL-CAINE: 10.
asked the President of the Board of Trade on what approximate date it is expected that the formal trade negotiations between Great Britain and Poland will commence?

Dr. BURGIN: I hope that it will be possible to begin negotiations in a few weeks' time.

TRADE MARKS (JAPAN).

Captain DOWER: 12.
asked the President of the Board of Trade if he can now make a statement with regard to the text of the proposals of the Japanese
Government to prevent their nationals from imitating and copying the trade marks of other countries and other such methods of unfair trading?

Dr. BURGIN: I have seen announcements in the Press to the effect that the Japanese Government have introduced a Bill to deal with the question of unfair competition but I have not received the text of this measure.

IMPORT DUTIES.

Sir NICHOLAS GRATTAN-DOYLE: 3.
asked the President of the Board of Trade the value of the imports in 1931 and 1933, respectively, of those classes of goods on which, result of recent agreements with foreign countries, we are debarred either from imposing any duties at all or from imposing higher duties than those which were in operation at the time the agreements were entered into?

Dr. BURGIN: I am having a statement prepared which I will send to my hon. Friend as soon as possible.

Mr. ALAN TODD: 4.
asked the President of the Board of Trade the total value of imports in 1931, 1932, and 1933, respectively, of all those classes of goods in respect of which additional duties, higher than those imposed under the Import Duties Act which came into force on 26th April, 1932, have been subsequently imposed?

Dr. BURGIN: Particulars of the value of imports of goods dutiable under the Import Duties Act, and subsequent additional Orders are given in Table 8 of Volume II of the Annual Statement of Trade for 1932, for the period beginning 1st March, 1932, when the Act came into operation, and ending 31st December of that year. Corresponding particulars for periods prior to the 1st March, 1932, are not available, while those in respect of 1933 have not yet been compiled.

Major-General Sir ALFRED KNOX: 18.
asked the President of the Board of Trade if he is prepared to seek a revision of the trade agreement with Germany under which the duties on clocks were reduced from 33⅓per cent. to 20 per cent. in some cases and 25 per cent. in others, having regard to the fact that the imports of clocks and clock movements increased from 419,712 in the first two months of
1933 to 677,245 in the corresponding period of 1934, an increase of 61.4 per cent.?

Dr. BURGIN: No, Sir.

Sir A. KNOX: In view of the large percentage of increase in imports in a single year does the hon. Member think that this British industry has sufficient protection?

Dr. BURGIN: That is another matter. What I have said is that once a trade agreement has been made with a foreign country the Board of Trade does not propose to interfere with it until it has had a run.

Mrs. COPELAND: 24.
asked the President of the Board of Trade if he is prepared to seek a revision of the trade agreements with Norway and Sweden under which duties on kraft paper were reduced from 25 per cent. to 16⅔per cent., having regard to the fact that the retained imports of kraft paper increased from 215,277 cwts. in the first two months of 1933 to 365,366 cwts. in the corresponding period of 1934?

Dr. BURGIN: No, Sir. The import duty on kraft paper was reduced as part of a trade bargain concluded for a term of three years under which this country obtained concessions in, other directions.

Mr. BURNETT: Will the hon. Gentleman bear in mind, when the time comes to reconsider this matter, that it is not only the reduced duty but also the Scandinavian exchange with which the British manufacturers of kraft paper have to contend?

Dr. BURGIN: Yes, Sir, all those considerations will be borne in mind.

Brigadier-General Sir HENRY CROFT: Can the hon. Gentleman say how much coal these increased imports represent?

Dr. BURGIN: Not without having the question on the Paper.

Sir WILLIAM RAY: 46.
asked the Chancellor of the Exchequer whether his attention has been drawn to the large increase in the quantities of many classes of manufactured goods imported in the first two months of the present year as compared with the corresponding period of last year; and whether, under these circumstances, he is prepared to provide
in the Budget for a general increase in the level of import duties now in operation?

The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha): I would refer to the answer given by my right hon. Friend the President of the Board of Trade to the hon. Member for the Stroud Division (Mr. Perkins) on the 28th March.

Mr. HERBERT WILLIAMS: Am I to understand that His Majesty's Government mean that they have no responsibility for the general level of tariff duties?

Mr. HORE-BELISHA: I hope my hon. Friend will not understand anything of the kind.

Mr. WILLIAMS: But is it not the ease that all previous answers have said that this is a matter solely for the Import Duties Advisory Committee?

Mr. HORE-BELISHA: My hon. Friend is as well acquainted with the law as I am, and he can draw his own deductions.

Mr. LYONS: 50.
asked the Chancellor of the Exchequer the number of applications for higher duties that have been under the consideration of the Import Duties Advisory Committee for periods exceeding 12 months and six months, respectively?

Sir WILFRID SUGDEN: 54.
asked the Financial Secretary to the Treasury the maximum and the minimum periods, respectively, which have elapsed between an application to the Import Duties Advisory Committee for an additional duty and the date on which an additional duty was imposed as a sequel to such application; and will he say on what basis the variation of period is agreed for the various types of products concerned therein?

Mr. HORE-BELISHA: I am advised that it is difficult to say in many cases at what date tentative inquiries become a definite and documented application by the industry concerned. Moreover, an application may be held in abeyance by the applicants, or by the Import Duties Advisory Committee on the ground that the time is not ripe to take a definite decision either to reject it or to make a recommendation. Additional duties
have been imposed or varied on very many classes of goods, large and small, and I do not think I should be justified in asking the committee to undertake the lengthy research that would be involved in endeavouring to estimate periods which could not, for the reasons just given, convey any useful information.

Mr. LYONS: 53.
asked the Chancellor of the Exchequer whether, in view of the length of time taken by the Import Duties Advisory Committee in dealing with applications by certain industries, he will introduce amending legislation to empower immediate action where excessive importations are shown or where great delay is likely, so as to prevent the uncertainty and forestalling which may ensue?

Mr. HORE-BELISHA: My hon. Friend's suggestion would appear to involve putting on the duty first and inquiring into its desirability afterwards, and I do not think legislation of such a nature would be justified.

Mr. LYONS: Will my hon. Friend consider listening to the representations of those industries which have been suffering in the manner I have indicated?

IMPORTED CARPETS.

Colonel GOODMAN: 5.
asked the President of the Board of Trade whether his attention has been drawn to the fact that the imports of carpets for January and February of 1934 were 629,000 square yards as compared with 364,000 square yards for the same period in 1933; and whether he is proposing to take steps to restrict the imports of these goods?

Dr. BURGIN: I am aware of the figures quoted by my hon. and gallant Friend. As regards the second part of the question, I would refer to the reply I gave on the 20th March to the hon. Member for Croydon, South (Mr. H. Williams).

Colonel GOODMAN: In view of the fact that the imports of carpets have increased from 2,500 square yards in 1932 to 270,000 square yards for the corresponding period in 1933 will the hon. Member take some action?

Dr. BURGIN: A large percentage of the increase comes from India.

Mr. H. WILLIAMS: Is it not the case that the bulk of the increase comes from Belgium, whose imports have gone up by more than 1,000 per cent.?

Dr. BURGIN: It is the fact that a large quantity comes from Belgium, but, when the figures are looked into, I think it will be found that my statement is the more accurate and that the greater quantity has come from India.

Sir H. CROFT: If the greater quantity has come from India, is not that all the more reason why immediate steps should be taken to limit the imports from foreign countries?

Dr. BURGIN: That is a point which will be taken into consideration.

IRON AND STEEL INDUSTRY.

Miss WARD: 6.
asked the President of the Board of Trade if his attention has been drawn to the fact that the tonnage of retained imports of iron and steel in the first two months of 1934 was only 3 per cent. below the level of those in the same period of 1923; and, having regard to this fact, is he prepared to introduce legislation for the purpose of restricting these imports to a point below their present level?

Dr. BURGIN: I am aware of the figures to which my hon. Friend refers, but any question of a variation in the duties payable on these goods is a matter for the Import Duties Advisory Committee in the first instance.

Mr. PIKE: 48.
asked the Chancellor of the Exchequer when an announcement will be made for the purpose of removing the doubt which prevails as to the continuance of the present scale of duties on iron and steel after 25th October next.?

Captain ARTHUR EVANS: 52.
asked the Chancellor of the Exchequer whether, having regard to the fact that the retained imports of steel bars, rods, etc., increased from 32,407 tons in the first two months of 1933 to 66,909 tons in the same period of 1934, he will make an early statement with regard to the fixing of the iron and steel duties in view of the uncertainty which now prevails, and which is delaying the erection of new plant for the production of steel bars?

Mr. HORE-BELISHA: I would refer my hon. Friends to the answer given to the hon. and gallant Member for Cardiff South (Captain A. Evans) on the 15th February last and the letter from the Import Duties Advisory Committee mentioned therein. I do not think that I can usefully add anything at present, except to say that the Import Duties Advisory Committee will no doubt make their report and recommendations on the subject in due course. I understand that a decision on the proposed scheme for a new central organisation for the industry is to be taken on Thursday next.

DAIRY PRODUCE (IMPORTS).

Mr. H. WILLIAMS: 7.
asked the President of the Board of Trade what percentage of our total imports of dairy produce during the last 12 months has been imported from foreign sources; and whether he will undertake not to impose any restriction of imports from Empire countries until this percentage from foreign sources is substantially reduced?

Dr. BURGIN: In the 12 months ended March, 1934, the value of the imports into the United Kingdom of dairy produce consigned from foreign countries represented 48 per cent. of the total imports of such products. I can assure my hon. Friend that in any measures which may be taken to restrict imports of dairy produce due consideration will be given to the interests of the Empire producer.

Mr. WILLIAMS: Ought not the Empire to have first call in this matter over foreign countries, and can the hon. Member say why there has been constant propaganda from Ministerial sources in support of a restriction of Empire products while foreign products are to come, in unrestricted?

SWITZERLAND (IMPORT RESTRICTIONS).

Mrs. COPELAND: 8.
asked the President of the Board of Trade whether his attention has been drawn to the increasing obstacles placed in the way of the United Kingdom exports to Switzerland by the Swiss Government import restrictions, especially with regard to sanitary fittings, baths, etc.; and whether, in view of Switzerland's favourable trade balance with this country and also the money spent in recent months by British tourists in Switzerland, he will use such means as may be within his powers to obtain
an increase in the quota of these particular articles?

Dr. BURGIN: I am aware of the import restrictions imposed by the Swiss Government on the goods referred to by the hon. Member and the matter is being taken up with the Swiss authorities.

SHIPPING INDUSTRY.

Mr. HALL-CAINE: 9.
asked the President of the Board of Trade the countries by which the Government has been asked to convene a maritime conference to help the shipping industry; what is the agenda for such a conference; and what has been the reply of the British Government?

Dr. BURGIN: The Government has not been asked by the Government of any other country to convene a maritime conference to help the shipping industry, but as stated in the Press on 6th April, the Danish, Netherland, Norwegian and Swedish Ministers in London have, on behalf of their respective Governments, stated that if the British Government should convene a conference on the position of shipping, their Governments would be willing to send delegates. A reply is being sent to the effect that note has been taken of the representations. I am sending my hon. Friend a copy of the Press statement on the subject.

COMMODITY PRICES.

Mr. KIRKWOOD: 13.
asked the President of the Board of Trade if he is aware of the great disparity between wholesale and retail prices of many commodities; and whether he will set up an inquiry to investigate the rate of profit obtained by retailers of commodities of all kinds, whether new or second-hand, with a view to checking excessive rates of profit obtained by retailers, middlemen and dealers at the expense of producers and consumers?

Dr. BURGIN: My right hon. Friend is not aware that there has been any general increase in the margin between wholesale and retail prices and sees no reason to institute an inquiry of the nature suggested.

CHINESE EGGS (IMPORTS).

Sir H. CROFT: 14.
asked the President of the Board of Trade whether his attention has been drawn to the fact that the percentage of the eggs in shell imported into this country from China increased from 6 per cent. of the total im-
ports? from all countries in the first two months of 1932 to over 17 per cent. in the same period of 1934; and will he take steps, by restriction of imports, to protect British poultry farmers against this growing Asiatic competition?

Dr. BURGIN: As my right hon. Friend the Minister of Agriculture informed the House on 15th March, steps are being taken to limit the imports of eggs in shell into this country from foreign countries during the period 15th March to 14th September to the figures for the corresponding period of last year. In the case of China the importers of the eggs have given the desired undertaking.

Mr. MACQUISTEN: Would it not be better that these Chinese eggs should be marked "Laid in China," so that buyers will know what they are getting?

BEEF IMPORTS.

Sir H. CROFT: 15.
asked the President of the Board of Trade if his attention has been drawn to the fact that, out of a total importation of beef from all countries in the first two months of 1934, amounting to 1,913,459 cwts., 182,317 cwts. are shown in the trade returns as having come from foreign countries with which we have concluded no recent trade agreements; and, in view of the continued depression of the livestock industry in this country, will he take steps by restricting imports to protect that industry against this competition from countries that are extending to us no concessions?

Dr. BURGIN: I am aware of the figures to which my hon. and gallant Friend refers. The restrictions on the importation of foreign beef provided for in the Ottawa Agreements and the emergency arrangements apply equally to all the foreign countries concerned, and my right hon. Friend is not at present prepared to depart from that principle.

Sir H. CROFT: In view of the fact that there is no reason why action should not be taken in the case of foreign countries who do not come within an agreement, cannot we have some hope that early action will be taken?

Dr. BURGIN: I am not sure what foreign countries the hon. and gallant Member has in mind, but with at least one of them to which he refers, trade negotiations are being actually conducted at the present moment.

JUTE INDUSTRY.

Mr. TEMPLETON: 19.
asked the President of the Board of Trade whether his attention has been drawn to the fact that unemployment in the jute industry is higher than in any other branch of the textile industry, and to the fact that the imports of jute sacks in the first two months of the present year were 59 per cent. higher than in the corresponding period of 1933; and what steps he proposes to take to deal with the situation, in view of the fact that this increase in importation is diminishing the advantages given to the export of jute manufactures as a consequence of the trade agreement with Denmark?

Dr. BURGIN: While I am aware that the position of the jute industry remains unsatisfactory, the increase in the exports of jute sacks and bags in the first two months of the present year, in comparison with the corresponding period of 1933, is considerably greater than the increase in the imports of these goods, and employment in the industry is appreciably better than it was a year ago.

Miss HORSBRUGH: Is it not the fact that the decrease in unemployment in the jute industry has been more than 3,000 this year?

Dr. BURGIN: I have it in percentage rather than in numbers, but I have no doubt that the hon. Lady's figures are, as usual, correct.

ARGENTINA AND JAPAN.

Lieut.-Colonel Sir WALTER SMILES: 22.
asked the President of the Board of Trade if he has any information as to what proportion of the Argentine Republic's exports for 1933 were taken by Japan?

Dr. BURGIN: The total value of the exports from the Argentine Republic in 1933 amounted to 1,120.8 million pesos, of which 4.9 million pesos, or 0.4 per cent., represented the value of exports to Japan.

Sir W. SMILES: 23.
asked the President of the Board of Trade whether Japanese cotton textiles enter the Argentine Republic with the same rates of Customs duties as those from Lancashire?

Dr. BURGIN: Yes, Sir.

SILK DUTIES.

Captain STRICKLAND: 47.
asked the Chancellor of the Exchequer in his attention has been drawn to the fact that the yardage of the retained imports of silk piece goods in the first two months of the present year was 52 per cent. higher than in the corresponding period of 1933; and whether he will take steps to secure that the embargo on the investigation of the Silk Duties by the Import Duties Advisory Committee shall now be withdrawn?

Mr. HORE-BELISHA: The answer to the first part of the question is in the affirmative. As regards the second part of the question, I am not yet in a position to add anything to the reply which I gave to my hon. Friend the Member for Leicester, East (Mr. Lyons) on the 11th April.

Captain STRICKLAND: Will my hon. Friend give any indication whatsoever as to when the embargo is likely to be withdrawn, so that the inquiry can be continued?

Mr. HORE-BELISHA: My right hon. Friend expects shortly to make a statement.

IMPORTED HEADGEAR.

Colonel GOODMAN: 56.
asked the Financial Secretary to the Treasury whether he is aware that the imports of hats and caps in January and February of this year are 95 per cent. higher than in January and February of last year; whether any representations by the industries concerned have been made to the Import Duties Advisory Committee; and, if so, whether any recommendation has as yet been received from the committee?

Mr. HORE-BELISHA: I am aware of the increase in imports of hats and hoods and shapes for making hats to which my hon. and gallant Friend refers. As regards the last part of the question, I would refer my hon. and gallant Friend to the answer which was given on the 22nd May last to the hon. Member for South Derby (Mr. Emrys-Evans) of which I am sending him a copy.

NEW ZEALAND (OTTAWA AGREEMENTS).

Sir PERCY HARRIS: 64.
asked the Secretary of State for Dominion Affairs whether he can publish the correspondence, if any, that has passed between this country and the Dominion of New Zealand
regarding the restriction of butter imports; and whether there has been any suggestion on the part of that Dominion that there should be a reduction on their part of duties on manufactured goods in return for the removal of restrictions on imports from their Dominion?

The SECRETARY of STATE for DOMINION AFFAIRS (Mr. J. H. Thomas): I am arranging for the early-publication of the telegraphic correspondence recently exchanged with His Majesty's Government in New Zealand in regard to dairy produce. As regards the second part of the question, I have nothing to add to my reply to a question addressed to me by the hon. Member for South Shields (Mr. Johnstone) on 28th March.

Sir P. HARRIS: Is it not a fact that there has been an offer of some kind from New Zealand that she is prepared to let in goods from this country if we will allow her to supply a full quantity of their produce to us?

Mr. THOMAS: I have already indicated that I am arranging for the correspondence to be published. The hon. Member will draw his own deductions when he sees it.

Sir WILLIAM WAYLAND: Is it not a fact that New Zealand buys more manufactured goods per head from us than any other country in the world

Viscountess ASTOR: And sell us the best butter?

Mr. THOMAS: That is true, and we buy 98 per cent. of the New Zealand produce.

Mr. EDWARD WILLIAMS (for Mr. DAVID GRENFELL): 63.
asked the Secretary of State for Dominion Affairs what negotiations have taken place with regard to prolonging the provisions of the Ottawa Agreement beyond the date originally laid down; and what representations have been made on behalf of New Zealand with a view to reciprocal arrangements which will enable imports of New Zealand butter and cheese to be maintained?

Mr. THOMAS: I presume that the hon. Member has in mind not the provisions of the Ottawa Agreements as a whole, but the particular provisions
relating to meat, which expire on 30th June next, and dairy produce, which expire on 20th August, 1935. No negotiations with a view to extending the periods specified in these provisions have taken place. As regards the second part of the question, no representations of the kind indicated have been made by His Majesty's Government in New Zealand, but I am arranging for the early publication of correspondence with His Majesty's Government in New Zealand which indicates the position.

CANADA (PEDIGREE BREEDING PIGS).

Mr. GLOSSOP: 65.
asked the Secretary of State for Dominion Affairs if he is aware that the Canadian Government are importing from Sweden between 60 and 70 pedigree pigs, including a number of large white Yorkshire boars; and whether, in view of the fact that the Ottawa Agreements permit free entry into this country of 2,500,000 cwt. of bacon and ham from Canada, he will make representations to the Canadian Government with a view to their purchasing future consignments of pedigree breeding pigs from this country?

Mr. J. H. THOMAS: I am aware of the transactions referred to, but, according to my information, all but eight of these pigs are of a breed which is not available in the United Kingdom. In the circumstances, my hon. Friend will no doubt agree that no action such as that suggested is needed.

Mr. GLOSSOP: Is my right hon. Friend aware that these eight pigs can be obtained in this country, and will he make representations with regard to that?

Mr. THOMAS: I am always priding myself on being an authority on many things except pigs.

Oral Answers to Questions — GERMANY (ARMAMENTS EXPENDITURE).

Brigadier-General CLIFTON BROWN: 11.
asked the President of the Board of Trade whether, in view of the fact that Germany refuses to repay her loans though at the same time she is expending large sums on re-armament, he will take steps to put an embargo on all German goods coming into this country until such time as she reduces her extra expenditure on armaments?

Dr. BURGIN: I would refer my hon. and gallant Friend to the answer which my right hon. Friend the Chancellor of the Exchequer gave on 21st March to the hon. and gallant Member for Birkenhead West (Lieut.-Colonel Sandeman Allen).

Oral Answers to Questions — FISHING INDUSTRY.

Mr. DREWE: 16 and 17.
asked the President of the Board of Trade (1) whether he will make every effort to secure in the new French Commercial Treaty that agreement is reached to limit the size of mesh in French trawlers to the same size enforced by law on British trawlers;
(2) whether he will make every effort in the new French Commercial Treaty to get an extension of the present three-mile limit so as to safeguard British grounds?

Dr. BURGIN: Regulation of fishing operations and questions affecting territorial waters are outside the scope of the present negotiations with France. I am, however, informed that the subject of the limitation of the mesh of fishing nets, which has been closely studied for years past by the International Council for the Exploration of the Sea, will be the principal topic of discussion at its annual meeting next June. It is hoped that this discussion will lead to agreed recommendations for the consideration of the Governments concerned.

Viscountess ASTOR: In case these negotiations fail and there is no agreement, shall we have to go on with a larger mesh and France catching all the fish, big and small?

Dr. BURGIN: It is a difficult matter, and we cannot, except by agreement, induce the French to alter the mesh of the nets.

Viscountess ASTOR: Surely we can alter the mesh of our own nets?

Mr. CHARLES WILLIAMS: Is the hon. Member aware that the present position is highly disadvantageous to British fishermen who are suffering a terrible handicap in this respect?

Sir MURDOCH McKENZIE WOOD: 33.
asked the Secretary of State for Scotland what have been the earnings for each of the last three years of share
fishermen from the north-east and east of Scotland engaged in the herring fishing?

The SECRETARY of STATE for SCOTLAND (Sir Godfrey Collins): As my hon. Friend is aware, there are great variations as between different ports, and different vessels and individuals as to the time devoted to the various fishings, the results of their operations and the extent to which the men participate in the net's share of the earnings in addition to the crew's share. This being so I regret that I am not in a position to furnish the particulars desired by my hon. Friend.

Sir M. WOOD: 34.
asked the Secretary of State for Scotland if he will suggest to the Sea-Fish Commission the desirability of their making, if possible, an interim report with regard to their investigations into the herring-fishing Industry before the beginning of the forthcoming summer fishing?

Sir G. COLLINS: I have consulted the Sea-Fish Commission about my hon. Friend's suggestion, and am informed that while they are making every effort to carry through their investigations of the herring-fishing industry at the earliest possible date, they will not be in a position to make a report before the summer fishing.

Sir M. WOOD: Does not the right hon. Gentleman think that it will be necessary for him to make emergency proposals before the commencement of the next season's fishing?

Sir G. COLLINS: No, Sir, I must await the report of the Sea-Fish Commission.

Sir M. WOOD: Does the right hon. Gentleman understand that there is a grave emergency to be met and that there is an opinion that the Government themselves must come forward and deal with the situation?

Sir G. COLLINS: I realise the urgency of the situation, but, having appointed this Commission to do this particular job of work, I am anxious to get their report before I come to any decision.

Sir M. WOOD: Is the right hon. Gentleman aware that the Government waited for six months before they appointed the Commission after the Act had been passed?

Oral Answers to Questions — MERCHANT SHIPPING ACTS (PROSECUTIONS).

Mr. RANKIN: 20.
asked the President of the Board of Trade how many prosecutions were instituted in this country during 1933 under the Merchant Shipping Acts in connection with the overloading of ships; and what was the nationality of the ships in question?

Dr. BURGIN: During the year 1933 proceedings were taken in this country against four ships for submersion of the appropriate loadline, one French, one Norwegian and two Swedish.

BANKRUPTCY ACT.

Captain BULLOCK: 21.
asked the President of the Board of Trade whether he is aware that, in view of the decision of the courts that Sub-section 2 of Section 51 of the Bankruptcy Act does not apply to the prospective and contingent earnings of a professional man in the exercise of his profession, cases of considerable hardship exist where creditors in poor circumstances are unable to obtain any sums owed to them by persons who have been adjudged bankrupt and subsequently earn substantial sums in the above-mentioned way; and whether he will consider the introduction of amending legislation to deal with this matter?

Dr. BURGIN: Any proposal to extend the provisions of Section 51 of the Bankruptcy Act to cases in which future income or earnings are contingent and fluctuating would be attended by serious practical difficulties, but other provisions of the Bankruptcy Act already enable the Official Receiver to intervene on behalf of the creditors in cases where evidence is forthcoming that an undischarged bankrupt is, in fact, earning substantial sums in the exercise of his profession.

Oral Answers to Questions — BRITISH ARMY.

HORSES (CENSUS).

Brigadier-General NATION: 26.
asked the Financial Secretary to the War Office whether a census of Horses suitable for military purposes is ever carried out; and, if so, what the total cost of such a census to the War Department is?

The FINANCIAL SECRETARY to the WAR OFFICE (Mr. Duff Cooper): A census of all horses and ponies in Great Britain is taken periodically. The last was held in 1924. A further census will be taken in May this year, the provision in Estimates being £l,000.

MOBILISATION (EXERCISES).

Brigadier-General NATION: 27.
asked the Financial Secretary to the War Office whether practice mobilisations are ever carried out now by the various units of the Army as they used to be before the War?

Mr. COOPER: Exercises in which formations and units are brought up to war strength by reinforcement from other units are held from time to time for experimental and training purposes, but it has not been possible, since the War, to practice mobilisation of units to the extent of calling up reservists.

Brigadier-General NATION: In view of the fact that in the mobilisation in 1914 serious deficiencies were discovered, does not my hon. Friend think that these exercises should be more frequently held?

Mr. COOPER: It is largely a question of the expense involved.

SOUTH WALES BORDERERS (BATTLE HONOUR).

Captain A. EVANS (for Mr. TEMPLE MORRIS): 25.
asked the Financial Secretary to the War Office whether his attention has been called to the petition by the Natal provincial council for the grant of the battle honour of Rorke's Drift to the South Wales Borderers; and whether he can make any statement as to the attitude of his Department on this matter?

Mr. COOPER: With regard to the first part of the question, I have no information beyond what has appeared in the Press. I am unable to say in advance what the attitude of the War Office would be if such a request were referred to them.

Oral Answers to Questions — SCOTLAND.

ABERLOUR ORPHANAGE TRUST.

sir IAN MACPHERSON: 28.
asked the Secretary of State for Scotland if the scheme has been prepared dealing with
the Aberlour Orphanage Trust by the Educational Endowments Commission; if it has been submitted to him; and, if so, when he proposes to give his decision upon it?

The UNDER-SECRETARY of STATE for SCOTLAND (Mr. Skelton): The scheme prepared by the commissioners has been submitted to the Department and is now being considered along with the objections thereto which have been received. The right hon. Gentleman may be interested to learn that the commissioners, after negotiation with the executive committee of the Representative Church Council of the Episcopal Church in Scotland and with the Committee of Management of Aberlour Orphanage, have themselves proposed that the scheme be remitted to them by the Department in order that effect may be given to certain agreed amendments which, I am informed, will render the scheme acceptable to the afore-mentioned bodies.

DEPAETMENT OF AGRICULTURE.

Mr. LEONARD: 29.
asked the Secretary of State for Scotland how many officers who qualified at entrance by examination for the lower branches of the British Civil Service are employed by the Department of Agriculture in Scotland; how many qualified at entrance by examination for the higher administrative or first division positions in the British Civil Service are employed by the said Department; and, particularly, how many of each division are employed in connection with land settlement in Scotland?

Sir G. COLLINS: The staff of the Department of Agriculture for Scotland includes two officers who entered the Civil Service by the examination for Class I clerkships (now administrative class) and 176 who entered by other examinations. The corresponding numbers for the land settlement division are none and 34. These numbers relate to the examinations for entrance to classes common to the Civil Service, excluding typing grades.

Mr. LEONARD: Will the right hon. Gentleman consider approaching the Treasury as to the position with regard to the employment of officers in these grades, with a view to providing that some of the higher officials shall be placed in Scotland, having regard to the peculiar
problems arising there, especially in connection with land legislation?

Sir G. COLLINS: That matter is presently under consideration.

MILK SUPPLIES.

Mr. LEONARD: 30.
asked the Secretary of State for Scotland what action has been taken by the Scottish Milk Marketing Board to ensure that milk intended for liquid consumption shall be adequately tested for the proper maintenance of a pure milk standard?

Sir G. COLLINS: The board have prescribed a minimum butter fat content standard of 3.4 per cent. The question of fixing a standard for cleanliness is engaging the attention of the board.

Mr. LEONARD: Is the right hon. Gentleman aware that dissatisfaction has already arisen in regard to the test by the Department's independent laboratory and that one prosecution has already taken place in which it was shown that a farmer in 10 days had supplied 560 gallons and had introduced 96½gallons of water; and will the right hon. Gentleman take some steps to deal with this matter?

Sir G. COLLINS: I understand that there have been some complaints. The matter is engaging the attention of the board.

Mr. LEONARD: 31.
asked the Secretary of State for Scotland if he is aware that the Scottish Milk Marketing Board is levying haulage charges upon farmers whose milk is drawn in their own vehicles 100 per cent. more than those farmers are credited with for performing this haulage; and under what authority the board has acted in creating a special fund from this excessive charge and for what purpose has it to be used?

Sir G. COLLINS: As regards the first part of the question, I am aware that the haulage position under the Scottish Milk Marketing Scheme is to the effect suggested by the hon. Member. As regards the second part, the authority for the action of the Board is contained in Sections 21, 24 (3) (e) and 61 of the scheme. I am informed that any sum at the credit of the fund is taken into account by the board in determining at the end of each month the average price payable to the producers for the milk supplied by them.

EDUCATION (ADVANCED DIVISION SCHOOLS).

Mr. MAXTON: 32.
asked the Secretary of State for Scotland in which education areas the 37 advanced division schools in Scotland were situated?

Mr. SKELTON: As the answer is in the nature of a tabular statement, I propose, with the hon. Member's permission, to circulate it in the OFFICIAL REPORT.

Following is the statement:


Education Area
Number of Advanced Division Schools.


Ayr
2


Bute
1


Dumfries
1


Fife
2


Lanark
3


Perth and Kinross
1


Renfrew
1


Stirling
1


West Lothian
1


Aberdeen (Burgh)
7


Dundee
3


Edinburgh
5


Glasgow
9

EDUCATIONAL ENDOWMENTS COMMISSION.

Sir M. WOOD: 35.
asked the Secretary of State for Scotland what proportion of their work has already been completed by the Educational Endowments (Scotland) Commission; and whether it is expected that their work will be completed by the end of this year when the commissioners' term of office expires?

Mr. SKELTON: The Commission have completed rather more than half of their work, but they still have to deal with the endowments of Glasgow, Dunbarton, Fife, Lanark, Perth and Kinross, Renfrew and Stirling. I am informed that full details of the state of progress will be given in the Commissioners' Fifth Report, which will be published at an early date and will be available for hon. Members. It will not be possible for the Commissioners to complete their work by the end of this year.

Sir I. MACPHERSON: Is it proposed to end the life of this Commission at the end of the year?

Mr. SKELTON: The question of whether legislation will be introduced continuing the life of the Commission is at present under consideration.

Sir I. MACPHERSON: Will the hon. Gentleman bear in mind that the people
of Scotland desire that the Commission's life should be ended?

Mr. SKELTON: All relevant considerations will be borne in mind.

Oral Answers to Questions — COAL INDUSTRY.

STONE DUST.

Mr. DAVID DAVIES: 36.
asked the Secretary for Mines the number of tons of stone dust used in each of the inspectorate districts for the country during the years 1930, 1931, 1932 and 1933, respectively, giving the output of coal in each district for the same period?

The SECRETARY for MINES (Mr. Ernest Brown): Information as to the amount of stone dust used is not available and presumably, therefore, the second part of the question does not arise, but if the hon. Member still wishes to have that information, I shall be glad to send it to him.

PITHEAD BATHS (ACCIDENTS).

Mr. TINKER: 37.
asked the Secretary for Mines if accidents that occur to persons using pithead baths are reported to his Department; and, if so, will he give the figures for 1930, 1931, 1932 and 1933?

Mr. E. BROWN: The official returns of accidents at coal mines do not include accidents to persons using pithead baths, but I understand that during the four years in question compensation was paid in respect of about 150 such accidents. I should explain that the trustees of every baths installation are required to take out a policy of insurance to provide every colliery employé who is injured whilst using the baths with the same compensation as he would be entitled to under the Workmen's Compensation Act if the injury occurred in the course of his employment at the colliery.

STOCKS.

Mr. TINKER: 38.
asked the Secretary for Mines the amount of the stocks of coal at the pit-heads for the years 1925 and 1933; and will he give separate figures for Lancashire?

Mr. E. BROWN: At 31st December, 1925, the quantity of coal in stock at pit-head in Great Britain was 4,971,000 tons and at 31st December, 1933, 6,096,000 tons. The corresponding figures for Lancashire and Cheshire were 661,000 tons and 648,000 tons, respectively.

RAGLAN COLLIERY, SOUTH WALES (OVERTIME).

Mr. E. WILLIAMS: 39.
asked the Secretary for Mines whether he is aware that miners engaged at Raglan Colliery, South Wales, are compelled to work excessive overtime in shifting conveyors after the termination of their statutory hours; and whether he will take steps to prevent these breaches of the law?

Mr. E. BROWN: I have not yet completed my inquiries in this case, so perhaps the hon. Member will be good enough to put down his question again in a week's time.

OUTPUT.

Miss WARD: 40.
asked the Secretary for Mines if he can give the output in the mining industry of the first quarter of the years 1931, 1932, 1933, and 1934, respectively?

Mr. E. BROWN: The output of coal in Great Britain during the first quarter of 1931 was 57,311,000 tons. The corresponding figures for the years 1932 to 1934 were 55,847,000, 56,177,000, and 59,669,000 tons. It should be noted that the output in 1931 was affected by a dispute in South Wales and that in 1932 and 1934 by the incidence, in whole or in part, of the Easter holidays.

Miss WARD: Does my hon. Friend attribute this improvement in trade in the main to the policy pursued by the National Government?

Mr. BROWN: Naturally.

Mr. BATEY: Will the hon. Gentleman tell us what the National Government have done?

Mr. BROWN: I have done that on many occasions, and I hope to do it on many more.

Mr. LAWSON: Is the hon. Gentleman aware that there are fewer men working in the mines?

Mr. BROWN: I am aware that they are working more shifts per week.

SAFETY COURSES, NORTHUMBERLAND AND DURHAM.

Mr. DICKIE: 41.
asked the Secretary for Mines what progress has been made in the organisation of courses of safety instruction for boys employed at the mines in Northumberland and Durham?

Mr. E. BROWN: Courses of safety instruction covering a period of three months were started last Autumn at con-
venient centres in both counties, and over 1,750 boys in all were enrolled. A second session of classes was started in the New Year, and enrolments, which numbered about 1,400, represent an entirely fresh set of boys except for a few boys who are taking the course a second time. These results have only been achieved by the combined and unremitting efforts of men of good will in the education authorities and all sections of the mining industry, and of the boys themselves. I have great hopes of the advantages to be secured from these courses of safety instruction, and I am glad to have this opportunity of expressing my warm appreciation of the public-spirited work of all those concerned, and of the success which is attending it.

Mr. DICKIE: In view of the advantage of this particular form of instruction, will the Minister encourage the formation of similar classes in other districts?

Mr. BROWN: My hon. Friend will understand that other counties follow Yorkshire, Notts and Derby, Lancashire, and other districts, and we are doing all we can to get every district to take them up.

SAFETY BOOKLET.

Mrs. SHAW: 42.
asked the Secretary for Mines whether steps have been taken to bring to the notice of those engaged in the mining industry the booklet recently published by the Safety in Mines Research Board dealing with the problem of preventing accidents from falls of ground; and whether copies of this booklet can be made available for Members of this House?

Mr. E. BROWN: Yes, Sir, this valuable booklet has been given wide publicity by notices and lectures, and in the general and technical Press, and nearly 18,000 copies have been sold in the period of 10 weeks since the booklet was published. In response to the latter part of the question, I have arranged for a supply of copies to be available in the Vote Office.

VENTILATION.

Mr. E. WILLIAMS (for Mr. D. GRENFELL): 43.
asked the Secretary for Mines whether he has a report of the number of cases in which firemen or deputies report the presence of gas on their daily inspections; and whether he is able to make comparison of the state
of ventilation in coal mines from such information?

Mr. E. BROWN: The answer to the first part of the question is "No." As regards the second part, I would refer the hon. Member to the reply that was given him in reply to a similar question on 4th December last. The statutory reports of the inspections made by deputies are studied at the mines by His Majesty's inspectors in relation to their own inspections and reports.

Mr. E. WILLIAMS (for Mr. D. GRENFELL): 44.
asked the Secretary for Mines whether he has received reports of the emission of sparks from the violent contact of steel rings on removal by mechanical appliances; and whether, having regard to the possible ignition of firedamp by such means, he will require special attention to the state of ventilation on all roadways where such operations are to be carried out?

Mr. BROWN: I have a long answer, and, with the hon. Member's permission, I will circulate it in the OFFICIAL REPORT.

Following is the answer:

Yes, Sir. In a few instances, flashing or sparking associated either with the withdrawal of steel arching or with its sudden fracture, has been observed underground. These phenomena are being studied by the Safety in Mines Research Board, and their investigators have recently succeeded in reproducing them experimentally, using a special testing plant belonging to the London, Midland and Scottish Railway Company, which was generously placed at the board's service by the railway company. An account of the work will be published shortly in the board's annual report and, in the meantime, the hon. Member's question and this reply will serve effectively to bring the matter to the notice of mine managements and others concerned. I may add that it is not known at present whether these flashes or sparks are capable of igniting firedamp.

ARMS TRAFFIC.

Mr. MAXTON: 45.
asked the Prime Minister whether, in view of the situation in many European countries, he will introduce legislation to forbid the sale of armaments abroad by British armament firms?

The PRIME MINISTER (Mr. Ramsay MacDonald): I am sure it is obvious to my hon. Friend that if his object is to promote disarmament and peace by such legislation, similar legislation would be needed and would have to be strictly applied in other countries also where armament factories exist. In this country certain powers to regulate export of arms exist, but there are no such powers and no such practice in most other countries, and our attempts to get international agreement upon the subject have not met with much support hitherto.

Mr. MAXTON: My purpose in putting the question is not to raise the general question of disarmament; the specific question that I put to the Prime Minister was whether he would do something to prevent British armament firms arming our potential enemies on the Continent?

The PRIME MINISTER: The point is that armaments dealt with in this way must have an object. The object is undoubtedly general disarmament and peace, and that can only be done by agreement.

Mr. HANNON: Has there come to my right hon. Friend's notice any particular case in which an armament firm in this country has taken action in foreign countries of the nature suggested in the question?

Mr. MAXTON: Is the right hon. Gentleman aware that there were British soldiers killed in the last War with British shells?

Mr. MANDER: 75.
asked the Secretary of State for Foreign Affairs if, in view of the failure of the efforts of the League of Nations' Commission to settle the dispute between Bolivia and Paraguay, he will consider the advisability of proposing at a public session of the Council of the League that every country should place an embargo on the export of arms to these two States?

The LORD PRIVY SEAL (Mr. Eden): As my right hon. Friend stated in reply to the hon. Member for Caerphilly (Mr. Morgan Jones) on the 27th November, it has proved impossible to obtain unconditional acceptance by all the Governments of the States members of the League Council of a form of declaration submitted to the council on the 8th March, 1933. The Commission appointed by the League of Nations to investigate the Bolivia-Paraguay dispute has now re-
turned to Europe but has not yet presented its report, and it would not seem that any further action can usefully be taken until the recommendations of the Commission have been submitted.

Mr. MANDER: Is it not a fact that if the armament interests of the world as a whole were to cease to supply arms to these two blood-thirsty nations they would not go on fighting?

Mr. EDEN: That may be, but His Majesty's Government have already taken an initiative in this matter. It is not their fault if others do not follow.

Oral Answers to Questions — NATIONAL FINANCE.

INCOME TAX (CO-OPERATIVE SOCIETIES).

Mr. CAPORN: 49.
asked the Chancellor of the Exchequer the additional income derived from co-operative societies in respect of the last financial year by reason of the provision of the Finance Act, 1933?

Mr. HORE-BELISHA: A special inquiry is being made to ascertain the increased liability to Income Tax resulting from last year's legislation regarding industrial and provident societies, and I hope to be in a position to furnish the information which my hon. Friend desires at a later date.

UNEMPLOYMENT.

Mr. GEORGE HALL: 58.
asked the Financial Secretary to the Treasury if

The amounts paid in subsidies or subventions in each of the years mentioned are shown in the following Table:—


Financial Year.
Civil Aviation (Comercial subsidies).
Sugar Beet.
Housing.
Coal Industry.
Total.





£
£
£
£
£


1920
…
…
—
—
3,238,093
—
3,238,093


1921
…
…
75,625
—
9,768,478
7,048,630
16,892,733


1922
…
…
181,762
—
10,492,512
—
10,674,264


1923
…
…
125,258
—
8,773,726
113
8,899,097


1924
…
…
138,511
492,040
9,045,588
—
9,676,139


1925
…
…
137,000
1,066,090
8,877,824
18,999,997
29,080,911


1926
…
…
172,480
3,225,859
9,448,253
4,199,088
17,045,680


1927
…
…
226,400
4,309,260
10,780,050
28,772
15,344,482


1928
…
…
230,600
2,854,239
12,067,927
—
15,152,766


1929
…
…
341,700
4,229,730
12,727,320
—
17,298,750


1930
…
…
388,800
6,022,972
13,668,333
—
20,080,105


1931
…
…
394,900
2,135,192
14,520,831
—
17,050,923


1932
…
…
398,300
2,356,207
15,214,726
—
17,969,233


1933 (approx.)
400,000
3,332,910
15,299,916
—
19,032,826


Total
…
3,211,326
30,024,499
153,923,527
30,276,600
217,436,002

he will issue a return, under various headings, of the amount of credits, grants, or cost to the State for trade facilities, export credits, unemployment grants, and any other forms of State expenditure designed to assist the unemployment problem, including the cost of unemployment insurance to the State, to employers and employed, together with the cost of transitional benefit paid for each year from 1920 to the latest available date?

Mr. HORE-BELISHA: The hon. Member will find full information about the services to which he refers specifically in Parliamentary Papers such as Appropriation Accounts, Trading Accounts and Special Returns; and I do not think the expense of compiling a separate return in the form desired by the hon. Member would be justified.

SUBSIDIES.

Mr. G. HALL: 59.
asked the Financial Secretary to the Treasury if he will submit a return to the House, under various headings, of the subsidies granted from State funds for civil aviation, sugar-beet, housing, and the coal industry for each year from 1920 to the latest available date?

Mr. HORE-BELISHA: As the answer contains a number of figures, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.

Following is the answer:

TRUSTEE SECURITIES.

Mr. OSWALD LEWIS: 51.
asked the Chancellor of the Exchequer if he will consider the desirability of legislation for amending the Trustee Act, 1925, to provide for some statutory authority with power to make suitable additions from time to time to the list of securities available for investment by trustees?

Mr. HORE-BELISHA: No, Sir; I do not think that such a proposal is necessary in the public interest, and I would refer my hon. Friend to the report of the Committee presided over by Mr. Justice Lawrence (Command Paper No. 3107 of 1928).

Mr. LEWIS: Will my hon. Friend ask the Chancellor of the Exchequer to consider what other methods there may be of keeping the Trustee Act, 1925, up to date?

Mr. HORE-BELISHA: I will certainly ask my right hon. Friend anything.

Oral Answers to Questions — INDUSTRIAL ASSURANCE.

Mr. KIRKWOOD: 55.
asked the Financial Secretary to the Treasury if he will introduce an Amendment to the Industrial and Provident Assurance Societies' Acts providing that 75 per cent. of the premiums paid on lapsed policies should be returned to the policy holders in all eases of lapse after one year?

Mr. HORE-BELISHA: The subject of lapses and surrender values of policies was dealt with fully by the Industrial Assurance Committee, whose recommendations are now under consideration by the Government.

Mr. JOHN WILMOT: Will the hon. Gentleman consider the urgent necessity of amending these Acts in view of the growth of undesirable practices which would be illegal under the Companies Acts?

Mr. HORE-BELISHA: I think my answer covers that when I say that the report is under consideration.

Oral Answers to Questions — MEMBERS OF PARLIAMENT (TRAVEL VOUCHERS).

Mr. KIRKWOOD: 57.
asked the Financial Secretary to the Treasury if he will take steps to make the travel vouchers
issued to Scottish Members of Parliament for travelling between the House of Commons and their constituencies available for air services, in view of the amount of time that could thus be saved on the long journey to and from Scotland?

Mr. HORE-BELISHA: For various reasons I am not in a position to adopt the hon. Member's proposal.

Mr. KIRKWOOD: The hon. Gentleman says that there are various reasons; can he give the House one of them?

Mr. HORE-BELISHA: There are, as I have said, many reasons, but I will give the hon. Gentleman one. He asks for a special privilege for Scotland, and that, of course, cannot be conceded without raising the question of its extension elsewhere.

Captain HAROLD BALFOUR: Can my hon. Friend say why that extension should not be given elsewhere provided there is no additional charge upon public funds?

Mr. KIRKWOOD: Scotland is not asking for any concession; it only asks for this extension because of the distance.

Oral Answers to Questions — PARLIAMENTARY AND NON-PARLIAMENTARY PAPERS.

Lieut.-Colonel Sir ARNOLD WILSON: 60.
asked the Financial Secretary to the Treasury whether he is aware that the minutes of evidence presented to the Parmoor Committee on Industrial Assurance in 1920 were laid before Parliament and published at a cost of 3s. for 278 pages, whereas the evidence laid before the Departmental Committee which reported last year was not laid before Parliament and costs £2 19s. 6d. for 1,249 pages of the same size; and whether he can give reasons for the differential treatment of these cases?

Mr. HORE-BELISHA: Prior to 1921, the cost of setting up the type was taken into account in fixing the price of non-Parliamentary papers, but not of Parliamentary papers. In that year, in the interests of economy, it was decided that for the future Parliamentary and non-Parliamentary papers should be treated alike in this respect and that various papers, including minutes of evidence of
commissions and committees, hitherto published as Parliamentary papers, should be issued as non-Parliamentary papers.

Sir A. WILSON: Can my hon. Friend state what authority decides whether the evidence submitted to a Departmental Committee is presented to Parliament in an accessible form or is published by the Stationery Office in a relatively inaccessible form?

Mr. HORE-BELISHA: I would like notice of that question.

Oral Answers to Questions — DARTMOOR PRISON (EX-OFFICERS' GRANT).

Mr. McENTEE: 61.
asked the Financial Secretary to the Treasury having regard to the fact that the £50 special grant made to Mrs. Lewis, whose husband, ex-prison-officer G. H. Lewis, was badly injured in the Dartmoor mutiny, is nearly absorbed, whether he will consider making another similar grant to assist Mrs. Lewis in her expenses in respect of the maintenance of her husband in the mental home?

Mr. HORE-BELISHA: I am having inquiries made and will communicate with the hon. Member.

Mr. McENTEE: As there is no improvement in the condition of the man to whom the question refers, will the hon. Gentleman consider favourably a further grant?

Mr. HORE-BELISHA: I have told the hon. Gentleman that I am making inquiries, and will communicate the result to him.

Oral Answers to Questions — OLD AGE PENSIONS.

Mr. THORNE: 62.
asked the Financial Secretary to the Treasury if he can state, approximately, the amount inuring to the credit of the Estimates on the old age pensions accounts by reason of the stoppage of such pensions when the pensioners are inmates of infirmaries, or similar institutions, during the past five years; and the number of such pensioners suffering such stoppage?

Mr. HORE-BELISHA: I regret that the information desired by the hon. Member is not available.

Oral Answers to Questions — SOUTH AFRICA STATUS BILL.

Mr. LEWIS: 66.
asked the Secretary of State for Dominion Affairs whether the contents of the South African Status Bill were communicated to His Majesty's Government in the United Kingdom before this measure was introduced in the Union Assembly; if any amendments in the drafting of the Bill were suggested by His Majesty's Government in the United Kingdom; and if the Bill, as introduced, incorporated any or all of such amendments?

Mr. J. H. THOMAS: His Majesty's Government in the Union of South Africa consulted His Majesty's Government in the United Kingdom with regard to a special point affecting trustee stocks and arising in connection with the proposed repeal of Section 65 of the South Africa Act. Consultation was limited to this point, on which full agreement was reached between the two Governments.

Oral Answers to Questions — AFFORESTATION.

Sir P. HARRIS: 67.
asked the hon. and gallant Member for Rye, as representing the Forestry Commissioners, the total amount of money paid by the Forestry Commission since the War to landowners to assist them in planting conifers and hardwoods, respectively?

Colonel Sir GEORGE GOURTHOPE (Forestry Commissioner): Since the War planting grants have been made to local authorities and private individuals in respect of conifers amounting to £200,000 approximately and hardwoods £42,000 approximately.

Sir P. HARRIS: Cannot the hon. and gallant Gentleman give the figures separately of grants to local authorities and to private landowners?

Sir G. COURTHOPE: No, Sir.

Oral Answers to Questions — POST OFFICE.

FEMALE TELEPHONISTS (NIGHT WORK).

Captain ERSKINE-BOLST: 68.
asked the Postmaster-General what grounds have been advanced by female telephonists for declining to work until 11 p.m., in view of the recent Whitley Council agreed pronouncement in favour of equality of opportunity for both sexes in the service?

The POSTMASTER-GENERAL (Sir Kingsley Wood): Apprehensions have been expressed on various grounds which I am endeavouring to expel as quickly as possible by explaining that the operators are not required to perform late duty more frequently than one week in four, that the great majority of late duties will terminate not later than 10.30 p.m., and that no male operator whose principal earnings are secured from his telephone work will be affected. The new system is already in operation in six exchanges in London, and other exchanges will be similarly provided as soon as suitable arrangements can be made.

Viscountess ASTOR: Is the Government aware that it is because the women organised with the men that the men are using them?

Sir K. WOOD: No. The reason for the new system is the superiority of the women telephone operators.

Viscountess ASTOR: I quite agree, but does not that show that, when the women are superior to the men, the men get the women to organise with them and then use the women?

TELEPHONE CHARGES.

Mr. HALL-CAINE: 69.
asked the Postmaster-General whether the Post Office is prepared to give a rebate to a telephone subscriber whose telephone is out of order for one day or more when the interruption is due to admitted carelessness or inefficiency on the part of the Post Office engineering department?

Sir K. WOOD: Yes, Sir. Such cases are extremely rare, and if my hon. Friend will give me particulars of any case which he has in mind, I shall be happy to inquire into it.

Oral Answers to Questions — TRANSPORT.

CYCLES (RED REFLECTORS).

Major THOMAS: 71.
asked the Secretary of State for the Home Department how many prosecutions took place during the year 1933 in the case of cyclists carrying inefficient red reflectors; and what steps are taken by his Department to test the efficiency or otherwise of red reflectors fitted to cycles?

The Secretary of STATE for the HOME DEPARTMENT (Sir John Gilmour): I regret that the information
asked for in the first part of the question is not available, as the returns do not show such cases separately from others connected with the lighting of vehicles. The testing of reflectors is not undertaken by my Department. Certain standards of efficiency have been prescribed by regulations made under the Road Transport Lighting Act of 1927. Cyclists whose reflectors do not conform to those standards may be liable to proceedings, and the Road Traffic Bill which has been introduced by my hon. Friend the Minister of Transport provides penalties for the sale of reflectors which do not comply with the prescribed conditions.

Major THOMAS: Are we to understand that no tests of these reflectors are carried out?

Sir J. GILMOUR: I have tried to explain that this has nothing to do with my Department.

SPEED LIMIT, OXFORD (FINES).

Captain Sir WILLIAM BRASS: 72.
asked the Home Secretary into what fund the money collected by fines from motorists for exceeding the local speed limit recently imposed in and around Oxford city is paid; and whether the money is retained locally and used in relief of rates or to pay for extra police in the area, or paid into the Treasury to the credit of the Road Fund?

Sir J. GILMOUR: The fines are applied in the same manner as other fines imposed under the Road Traffic Act, 1930, that is, they are payable to the Exchequer and an equivalent sum is placed to the credit of the Road Fund.

ACCIDENTS, HIGHGATE.

Sir PERCY HURD: 74.
asked the Minister of Transport whether he is aware of the increasing frequency of accidents involving life and limb at the five-road centre at the Archway Tavern, Highgate; and whether he will confer with the London County Council and the borough councils of Islington and St. Pancras, with a view to the provision of a passenger subway at this point?

The PARLIAMENTARY SECRETARY to the MINISTRY of TRANSPORT (Lieut.-Colonel Headlam): My hon. Friend is aware that traffic conditions at the Archway Tavern, Highgate, are unsatisfactory. The possibility of effecting
an improvement was considered a few years ago with the London County Council and the borough councils concerned, but owing to difficulties which arose, the matter was dropped. He is, however, quite prepared to consider any suitable scheme which the local authorities may wish to promote; and in the meantime he is in negotiation with the Islington Borough Council regarding the provision of traffic control signals at this junction, with a view to bringing about some improvement.

Sir P. HURD: May I ask whether consideration will be given to a passenger subway at that point?

Lieut.-Colonel HEADLAM: I am sure that consideration will be given to all means of safety.

Oral Answers to Questions — CHEMICAL WARFARE (DEFENCE MEASURES).

Captain FULLER: 73.
asked the Home Secretary whether, in view of the declaration of M. Litvinoff that gas will be employed in a future war, and of the growing organisation of defensive measures in many countries for the protection of the civil population against gas, he will take steps, in view of the negligible cost and non-provocative nature of such measures, to safeguard the public against the aerial use of gas by the dissemination of information, the training of personnel, the provision of gas services, and the speeding up generally of the organisation of civilian anti-gas measures?

Sir J. GILMOUR: I regret that I cannot add anything to the statement made by the Prime Minister in the course of the Debate on the Consolidated Fund Bill on the 21st March last.

Oral Answers to Questions — HOUSING.

BUILDING MATERIALS (BATHS).

Mr. SELLEY: 76.
asked the Minister of Health whether his attention has been drawn to the fact that in the first two months of 1934, 1,303 tons of baths were imported into this country, as compared with 610 tons in the corresponding period of 1933; and whether he will take steps to ensure that in all schemes under the control of his Department only baths of British manufacture shall be used?

The Minister of HEALTH (Sir Hilton Young): I am aware of the figures referred to. I have already suggested to local authorities the desirability of making use to the utmost extent practicable of goods and materials of home production, and I am sending to my hon. Friend a copy of a circular on this matter. I have no reason to suppose that local authorities generally are not acting upon the advice contained in this circular.

Mr. GRAHAM WHITE: May I ask my right hon. Friend whether it is not the case that there has recently been a rise of 30 per cent. in the price of English baths?

Sir H. YOUNG: I should like notice of that question.

Sir FRANCIS FREMANTLE: Is it not also necessary for the right hon. Gentleman to be aware of the fact that frequently it has been essential, in order to keep down the expenses of building materials, to be able to have recourse to foreign importations?

RATING ASSESSMENTS, SHEFFIELD.

Mr. PIKE: 78 and 79.
asked the Minister of Health (1) if he is aware that in the valuation list which became effective on 1st April, 1934, the assessments of many houses owned by the Sheffield Corporation were shown to be increased, and that, although accepted, the new assessments were so adjusted as to leave the amount payable weekly by corporation tenants unaltered; if he is aware that many members of the estates committee and Sheffield City Council are tenants of corporation houses; and what steps it is proposed to take to protect tenants of privately-owned property against the increased rent and rates which fall upon them;
(2) whether he is aware that council houses owned by the Sheffield Corporation are assessed inaccurately by comparison one with the other on a lower basis than is in operation in comparative areas and on a lower basis than privately-owned houses within the city boundaries; and whether he is satisfied that, following a recent decision of that authority, houses owned by the. Sheffield Corporation are now assessed at figures comparable, as required by law, to their true letting value?

Sip H. YOUNG: The assessments of certain houses owned by the corporation have been recently increased as a result of the quinquennial revaluation and the council propose to reduce the rents of some of the houses concurrently with the increase in the amounts payable for rates on reassessment. I have no jurisdiction in regard to the assessment of property to rates which is a matter for determination by the assessment committee subject to the right of any person aggrieved to appeal to the courts; the various Housing Acts and regulations contain certain conditions for subsidy purposes as regards rents, but the general management and control of municipal houses is vested in the local authority who may make such reasonable changes for individual tenancies as they may determine.

Mr. PIKE: In view of the circumstances in Sheffield by which members of the Sheffield Council have voted to themselves rent reductions and rate reductions while they have imposed additional charges upon tenants of slum property already condemned under slum clearance orders, will the right hon. Gentleman institute at his earliest possible convenience an inquiry into the whole position obtaining in that city?

Sir H. YOUNG: That really is the original question in another form. If the hon. Member will consider my answer, he will see that it bears upon the matter.

Mr. THORNE: Another dig at a Labour council.

SLUM CLEARANCE SCHEMES.

Sir P. HARRIS: 80.
asked the Minister of Health in how many slum clearance schemes has the work of clearance been actually commenced for the year ended 31st March, 1934, or the nearest available date; and how many persons therefrom have been actually rehoused?

Sir H. YOUNG: The number of clearance schemes, that is, confirmed orders or purchases by agreement in the course of the year ended 31st March last was 631, involving the demolition of 16,375 houses and the building of replacement houses for 73,718 persons, but I am not able to state the extent to which the work of clearance and rehousing had gone by the end of the year.

Captain FULLER: 84.
asked the Minister of Health if a slum clearance order for the West Gorton area of Manchester has yet been submitted; when the public inquiry will take place; and if it is the intention of the local authority to rehouse on the spot?

Sir H. YOUNG: I have received one clearance and three compulsory purchase orders made under the Housing Act, 1930, and relating to property in the West Gorton area of Manchester. The orders provide for a large measure of rehousing adjoining two of the areas to be cleared. The public inquiry has been fixed for 30th May.

Oral Answers to Questions — LONDON REFUSE (DISPOSAL).

Mr. McENTEE: 81.
asked the Minister of Health whether the advisory committee on London refuse have finished their work and reported; and, if so, will he state the nature of their report?

Sir H. YOUNG: I understand that the committee have completed their inspection of places where refuse is handled in the county, or disposed of outside the county, and also their inquiry into the collection and disposal of house refuse and the cleansing of streets and gullies in all but one of the City and Metropolitan borough councils; and that the committee hope shortly to be able to submit a report in the first place with regard to the disposal of London refuse.

Oral Answers to Questions — MANIFOLD VALLEY (TRACK).

Mr. MANDER: 82.
asked the Minister of Health if he is aware that, in connection with the preservation of the Manifold Valley, there is a widely-expressed desire that no road should be made through the valley and that the existing track of the London Midland and Scottish Railway, recently abandoned for that purpose, should be kept for pedestrians; and whether he intends to take any action to secure the above objects?

Sir H. YOUNG: I have made inquiry into the matters referred to in the question. I understand there has not been any suggestion on the part of the responsible highway authority that the abandoned railway track along the Manifold Valley should be converted into a carriage road or that a road should be made.

Mr. MANDER: Is my right hon. Friend aware that this track is the only means at certain spots of walking through this very beautiful valley, and will he inquire from the railway company whether they cannot see their way to leave it more or less in its present form, as it is more suitable for walking purposes?

Sir H. YOUNG: I think, if the hon. Member will consider the answer, he will see that his further question does not arise.

Oral Answers to Questions — NATIONAL HEALTH INSURANCE.

Mr. THORNE: 83.
asked the Minister of Health if he can state, owing to continued unemployment, at the end of December, 1933, the numbers of persons that have been denied medical benefit from their various approved societies?

Sir H. YOUNG: The returns which have now been received from approved societies indicate that the number of members who after a period of prolonged unemployment were continued in insurance during 1933 by virtue of Section 1 (5) of the National Health and Contributory Pensions Act, 1932, but ceased to be entitled to medical benefit on 31st December last (though continuing to be insured for pensions purposes) is approximately 125,000. This number will, however, be substantially reduced by reinstatements to medical benefit, notifications of which are now being received from societies at the rate of several hundreds a week.

Mr. LOGAN: In view of the large numbers referred to, do the Government propose to bring into operation again the Prolongation Act?

BUSINESS OF THE HOUSE.

Ordered,
That the Proceedings of the Committee of Ways and Means be exempted, at this day's Sitting, from the provisions of the Standing Order (Sittings of the House)."—[The Prime Minister.']

FINANCIAL STATEMENT (1934–35).

Copy ordered,
of Statement of Revenue and Expenditure as laid before the House by Mr. Chancellor of the Exchequer when opening the Budget."—(Mr. Hore-Belisha.)

Copy presented accordingly; to lie upon the Table, and to be printed.

SELECTION (STANDING COMMITTEES).

STANDING COMMITTEE C.

Mr. William Nicholson reported from the Committee of Selection; That they had discharged the following Members from Standing Committee C: Mr. Barclay-Harvey and Mr. Chorlton; and had appointed in substitution: Colonel Crookshank and Mr. Lovat-Fraser.

Mr. William Nicholson further reported from the Committee; That they had discharged the following Member from Standing Committee C (added in respect of the Road Traffic Bill): Sir Isidore Salmon; and had appointed in substitution: Mr. Turton.

STANDING COMMITTEE D.

Mr. William Nicholson further reported from the Committee; That they had discharged the following Member from Standing Committee D: Mr. Geoffrey Peto; and had appointed in substitution: The Solicitor General for Scotland.

Mr. William Nicholson further reported from the Committee; That they had discharged the following Member from Standing Committee D (added in respect of the Water Supplies (Exceptional Shortage Orders) Bill): Mr. Greenwood; and had appointed in substitution: Mr. Rhys Davies.

Reports to lie upon the Table.

COUNTY COURTS (AMENDMENT) BILL [LORDS].

Reported, with Amendments, from Standing Committee A.

Report to lie upon the Table, and to be printed.

Minutes of Proceedings to be printed.

Bill, as amended (in the Standing Committee), to be considered upon Monday next, and to be printed. [Bill 104.]

Orders of the Day — WAYS AND MEANS.

Considered in Committee.

[Sir DENNIS HERBERT in the Chair.]

Orders of the Day — FINANCIAL STATEMENT.

3.44 p.m.

The CHANCELLOR OF THE EXCHEQUER (Mr. Chamberlain): On the two previous occasions on which it has been my duty to present a financial statement to the Committee, I have been very conscious that a good deal of anxiety was mingled with the hopes that are traditionally associated with Budget Day. In 1932 many dark clouds still hung round the horizon. In 1933, although the outlook was distinctly brighter, there was no settled feeling that we were about to enjoy a spell of fine weather. To-day the atmosphere is distinctly brighter. The events of the last 12 months have shown gratifying evidence that the efforts of His Majesty's Government are bearing fruit. There is a small but distinct rise in wholesale prices; the rate of short-term interest has achieved new low records; the position of long-term loans has also improved to an extent which I think is perhaps not entirely realised. I wonder, for example, how many people recognise that stocks such as the old 2½per cent. Consols actually stand higher to-day than they did before the War. The volume of our industrial production has very much gone up and equilibrium has practically been restored in the balance of payments. If you look to what I might call the telltale statistics, the unemployment figures and statistics of such things as retail trade, consumption of electricity, transport, iron and steel production and house building, in every case you see a definite revival of activity. All this, combined with the fulfilment of the anticipation which I expressed at Halifax last December that I should wind up the year with a substantial surplus, has had its effect upon men's minds and it has established a new spirit of hope and confidence. If I might borrow an illustration from the titles of two well-known works of fiction, I would say that we have now finished the story of "Bleak House" and that we are sitting down this afternoon to
enjoy the first chapter of "Great Expectations."
Readers of Dickens do not need to be reminded that expectations, if carried to extravagant lengths, are apt to be disappointing. Do not let us allow ourselves to be tempted into forgetfulness of certain unpleasant facts which still have to be reckoned with before we can feel that our troubles are at an end. The improvement in the condition of the country is due almost entirely to the expansion of the home market and to the greater part of that market which has been secured by our own people. On the other hand, our export trade, although it is better than it was, is still far behind the figure at which it stood only a few years ago, not because we are being beaten out of the field by our competitors, for, on the contrary, as the Committee are aware, we have now regained our place as the first exporting country, but because of the disastrous shrinkage in international trade itself. The channels through which that trade formerly flowed so freely are still blocked, and indeed the passage seems to become more difficult as the spirit of economic nationalism continues to spread. We see new obstacles to international trade continually raised. We find ourselves in presence of new and formidable competitors who are scrambling for what little trade is left. Although the result of the past year has everywhere been rightly acclaimed as a remarkable achievement, yet there are certain features about the surplus of last year which cannot be expected to recur. Therefore, while I feel that the confidence in the future which is so widely prevalent has much to justify it, I feel bound to point out to the Committee that there are certain limitations and qualifications which cannot be ignored, and which must be borne in mind before we can feel that we have returned to normal conditions.

REVIEW OF PAST YEAR.

Twelve months ago I had to report to the Committee that the outturn of the year resulted in a deficit of £32,000,000. This year I am in the happy position of being able to present almost exactly the opposite case, for I find myself at the end of the year in possession of a surplus of £31,148,000, being the difference between the revenue of £724,567,000 and
the expenditure of £693,419,000. But this surplus of £31,000,000 does not really represent the true figure. Last year, £224,000,000 was provided for the service of the Debt, and, in accordance with the law, the whole of that sum was issued from the Exchequer; but the actual cost of interest and management of the Debt was just under £213,000,000, and, after meeting the payments to the United States Government of £3,300,000, I was still left with sufficient funds to defray out of the Exchequer the statutory Sinking Funds, which amounted to £7,700,000.

It was therefore unnecessary for me to use the power which I had been given by Parliament to borrow for the purpose of meeting the contractual Sinking Funds; they were paid, instead, out of income, and the real surplus may be put at about £39,000,000. As I shall explain at a later stage, we cannot expect that this abnormal cheapness of interest rates on the National Debt will continue indefinitely, but in the meantime I think it may fairly be counted among the gains which have resulted from the earlier measures taken by the Government to restore the national credit.

I will now give the Committee a brief account of the accounts for 1933–34. Beginning with the expenditure side, the Consolidated Fund Services other than Debt amounted to £10,719,000, and Supply Services to £458,700,000; and these two figures, together with the Fixed Debt Charge of £224,000,000, built up the total expenditure of £693,419,000. There was a saving on the Supply Services of £4,500,000, which was more than sufficient to cover the Supplementary Estimates of £3,400,000 which were found to be necessary. There was no exceptional saving upon any of the Votes, but I may mention that the decrease in unemployment which was such a feature of the year, and especially of the latter part of the year, was reflected in the fact that the expenditure on transitional payments was down by £3,300,000, and it was also found to be unnecessary to issue to the Unemployment Fund the deficiency grant of £1,300,000 for which I had provided.

On the revenue side, the receipts showed an excess over the Estimates of £25,800,000, towards which Customs and Excise provided a surplus of £17,000,000, including £7,000,000 from the duties under
the Import Duties Act, the Ottawa Agreements Act, and the Irish Free State (Special Duties) Act. I do not think it is to be wondered at that our estimates of the yield of these duties were not very accurate. We had an extremely short experience of the working of all these Acts, and what experience we had had been somewhat disappointing; but, in the event, the expansion of trade and the rise in the price level produced their effect, and we got a surplus of nearly £4,000,000 from the Import Duties Act, over £2,000,000 from the Ottawa Agreements Act, and £1,000,000 from the Irish Free State (Special Duties) Act.

The next largest increase in Customs and Excise revenue came from beer. It yielded nearly £5,000,000 more than I had expected. The Committee will remember that last year I lowered and remodelled the Beer Duty, in the hope of arresting that downward trend in the revenue which had been going on since 1929, and which had shown a precipitate fall after the emergency Budget of 1931. For that purpose I so rearranged the duty as to make it possible both to reduce the price and also to improve the quality of the beer, in the hope that, if I could not increase the consumption, I should at any rate stop the decline. I am glad to say that my anticipation has been more than fulfilled. The price of beer has been reduced by 1d. a pint, and the gravity of all beers has risen by 1½degrees on the average, a figure which, I may say, masks an even higher rise in the case of particular beers, because there has been, as was rather to be expected, a certain shift in taste during the past year from the heavier to the lighter beers. Consumption was reinforced by the expansion of trade and by the climatic conditions of last year; which resulted in its being increased by about one-sixth. I need only add that I understand that the brewers generally, in accordance with the promise which was made to me by the Brewers' Society at the time of the last Budget, have purchased substantially more British barley, or malt made from British barley, in the last year than in the previous year.

The Oil Duty produced a surplus of £2,700,000, and towards that the new duty of 1d. a gallon on heavy oil produced a surplus of about £750,000. There was also a surplus on spirits, wines,
tobacco, silk, and liquor licence duties. On the other hand there was a deficit on tea and sugar. In the case of tea, the shortage, which amounted to about £350,000, is no doubt due to the restrictions on exports from India, Ceylon, and the Dutch East Indies, which have resulted in a considerable rise in the price of common tea. In the case of sugar, where the deficit amounted to nearly £1,000,000, that is to be ascribed mainly to the fact that a greater quantity of sugar came from the different parts of the Empire, carrying with it of course a preference, and therefore produced less income to me than if it had come from foreign sources.

Inland Revenue at £392,000,000 gives me £14,200,000 more than I had anticipated. I must point out, however, that that increase was not derived from Income Tax and Surtax. Of those two staple sources of revenue, Income Tax produced £229,000,000 and Surtax £52,500,000, and the produce of the two together was within seven-tenths of 1 per cent. of the figure at which I put the estimate. The fact is that in the case of these two taxes we are dealing with past profits and income, and therefore we can be sure that we can estimate beforehand with very considerable accuracy what the revenue is going to be. In the present case we knew that we had to take into account a fall in profits and income. We knew also that we should receive a smaller instalment in the January payment. Our anticipations have in fact been completely fulfilled by the actual outturn of the year. I would like to say that Income Tax payers have again shown a most commendable readiness to meet their obligation to the community, and there has been a definite improvement in the rate of collection which I hope now is going to be a permanent feature of the system.

It is the Death Duties which have provided the greatest excess in revenue received over revenue estimated. They produced £85,250,000, which was no less than £10,500,000 more than I had expected. But no doubt the Committee are aware that this was due to the fact that during the year we received the largest payment that has ever come from one single estate in the whole history of the Death Duties. We cannot expect a repetition of that occurrence another year. Stamp Duties reflected the increased Stock Exchange
activities and gave me £22,700,000 against the £20,400,000 which I had expected. I do not think I need make any comment upon any of the other items which constitute Inland Revenue, except perhaps to remark, that, in the case of Excess Profits Duty and Corporation Profits Tax, which have both been repealed, we are now only collecting arrears and those arrears must naturally be a continually dwindling asset.

The net receipt from the Post Office under the vigorous administration of my right hon. Friend the Postmaster-General, was £13,100,000, showing a net increase over the estimate of £1,400,000. I would like to say that in every month of the year the postal receipts were higher than in the year before. The Motor Vehicles Duties did better, which is another encouraging sign. Crown Lands fulfilled expectations, but Sundry Loans and Miscellaneous Receipts showed a shortage of £7,000,000. This however was mainly due to the fact that certain items of miscellaneous revenue for which I had estimated in the Budget did not actually fall into the year's receipts.

That completes my review of the income and expenditure for the year. As I have already stated, the result was a surplus of £31,000,000, which according to the law must be devoted to the redemption of debt, and will very nearly make good the £32,000,000 which I had to borrow in the year before in order to meet the deficit of that year.

NATIONAL DEBT.

Before I pass to other matters the Committee may like to have a brief statement from me on the subject of the National Debt. I ought to draw particular attention again to the extraordinary cheapness of the rate of interest on Treasury Bills. The average over the whole year was only 12s. 6d. per cent., which was even lower than the exceptionally low level which we reached a year before and compares with an average over the whole pos-War period of £3 6s. 10d. per cent. The whole amount of Treasury Bills and Savings Certificates together at their lowest point in the year was over £1,200,000,000, but interest amounted to a little more than £15,000,000, only one and a quarter per cent. on that whole vast total.

During the year £40,000,000 of 4½per cent. Treasury Bonds and £24,000,000 of
5½per cent. United Kingdom Dollar Bonds were converted into 2½per cent. Conversion Loan or Conversion Bonds. By that operation we saved £615,000 in interest last year, and in a full year that saving will amount to £1,300,000. The net reduction in the nominal total of the dead weight debt was £21,600,000. Hon. Members will see in the White Paper that there is an apparent increase in the debt of £178,500,000, but if they add those two figures together they will see that the difference is accounted for by the issue from the Exchequer to the Exchange Equalisation Account of £200,000,000. This sum is of course covered by assets, and I may say that the 'account continues to show a profit.

EXPENDITURE, 1934–35.

Now I think the Committee will be ready to accompany me into 'an examination of the prospects for the future. I will begin with the expenditure side. The first point which I would mention is the Fixed Debt Charge. Neither last year nor the year before did I make any provision for War debt payments to America, nor for the receipt of War debts or reparations by ourselves. In the absence of any fresh development I propose to follow precisely the same procedure this year. But a more difficult problem perhaps arises when one comes to consider what is the proper sum to be allocated to the Fixed Debt Charge. How little fixed the Fixed Debt Charge really is may be illustrated by the fact that whereas last year we provided £224,000,000 for that purpose, until quite recently the figure stood at £355,000,000, a difference of £131,000,000. Of course, it is quite easy to see how that difference arises. That £224,000,000 was only considered sufficient because it made no provision for any Sinking Fund, because of the abnormal cheapness of the rates at which we could borrow on Treasury Bills, and because of the modest encashment of Savings Certificates. We cannot go on like that indefinitely. We cannot consider that we have arrived at a normal figure for the Fixed Debt Charge until it contains a provision for the interest on Treasury Bills and Savings Certificates which would cover an average over a period of years, and until it makes provision for a Sinking Fund, proportionate no doubt to what we can afford, but,
subject to that qualification, appropriate to the circumstances 'and conditions of the National Debt.

The question I had to ask myself was, has the time now arrived when we ought to begin the scaling up of the Fixed Debt Charge to a normal figure? It is a nice point. But on the whole, bearing in mind that there must always be a lag before the improvement in the condition of the country translates itself fully into an increase in the revenue, I came to the conclusion that it would not be unreasonable to proceed on the old lines for one more year, and once more to arm myself with the power which Parliament gave me last year to borrow for the purpose of meeting the contractual Sinking Funds, if that should be necessary. So the Fixed Debt Charge will stand at £224,000,000, and I hope that the Committee will note my warning that assuredly a larger provision will have to be made in future financial periods.

I now proceed to other items of expenditure. I put the Northern Ireland services at £6,500,000 and miscellaneous Consolidated Fund services at £3,700,000. I have also to make provision for the first payment to the Post Office Fund which was set up by the Finance Act of last year. Under the formula laid down in that Act there has to be paid to the fund on every 1st November a sum which is calculated by reference to the out-turn of the preceding year. Calculated on that basis I estimate that I shall have to make a payment of £2,000,000 on 1st November next. That brings the total of all the Consolidated Fund Services to £236,200,000.

The figures of the Supply Services have already been published. Although the provision for defence is up by £4,765,000 the total for Supply Services is only £461,924,000 against the original estimate of last year of £463,186,000, so that there is a net saving comparing the one estimate with the other of £1,200,000. Taking the Civil Estimates alone they amount to £335,603,000. That is £6,168,000 less than the original estimate of last year and £9,540,000 less than the total Estimates of last year including supplementaries. The principal cause of this decrease is of course the decrease in the Ministry of Labour Vote amounting to £10,688,000 which arises from the continued decline in unemployment. Against
that I have to set the fact that automatic increases in expenditure—that is increases which are not susceptible of control without legislation or without interference with existing commitments—exceed automatic decreases like the decrease in war pensions by a substantial amount. I also have had to make some provision for measures adopted by the Government with the approval of Parliament for such matters as the slum clearance campaign, the better marketing operations for agriculture and the provision of rural water supplies.

Turning to self-balancing expenditure, I estimate the expenditure of the Post Office at £60,463,000, an increase of £1,024,000 to meet the growth of business which is to be expected with the revival of trade. The item allotted to the Road Fund which is, of course, the produce of the Licence Duties less the Exchequer share of those duties is increased to £26,300,000 in order to allow for the expansion in the licences which we expect. Omitting self-balancing expenditure


the Supply Services amount to
£461,924,000


and the Consolidated Fund Services to
£236,200,000


making a total of ordinary expenditure of
£698,124,000

ESTIMATED REVENUE.

Now we turn to my Estimate of revenue on the existing basis of taxation. It is in the nature of things that the earliest items to reflect any change of activity in the country are the Customs and Excise Duties. Taking as I do a reasonably optimistic view of the future course of trade, I think I am justified in expecting a larger yield from nearly all the important items in Customs and Excise. First of all, however, there are one or two items which I must mention in which for special reasons I think there will be a decrease. In the case of sugar I must allow for a fall of £500,000 on account of increased supplies from home and Empire sources of production. I must also allow for a decrease in the case of duties under the Ottawa Agreements and Irish Free State Duties Acts. As everyone knows the purpose of the Ottawa Agreements Act was to increase inter-Imperial trade and in proportion as inter-Imperial trade takes the place of foreign trade so, of course, one must ex-
pect a smaller revenue from the duties that are imposed under that Act. In the case of the Irish Free State the reduction is due to the imposition of quotas in this country and to the fact that in several cases the Irish Free State Government has reduced the bounties upon its exports. However, these are exceptional cases and they do not amount to very much. In the case of import duties under the Import Duties Act, I obtained last year £22,800,000, which shows a substantial increase over the sum which I had estimated. This year I expect a further increase, and I put the yield at £24,000,000. Beer last year, after deducting about £2,250,000 which must be ascribed to the fact that a higher rate of duty was in operation before the 26th April, 1933, produced £56,600,000. I am advised that I must discount this figure in my calculations this year because we must not expect to have such thirsty weather as we had last year. All the same, I am sanguine enough to anticipate that we shall see increased consumption again this year. I put my estimate up on the existing basis of taxation to £58,400,000. Owing to the continued expansion of trade, we ought also to get a further increase in the produce of the oil duty and I have allowed for an extra £2,000,000 bringing the figure up to £42,700,000. I am also allowing for increases on tobacco, wine, tea, cocoa, dried fruit, matches, entertainments, liquor licence duties and import duties. Hon. Members will find full details in the White Paper. The total revenue which I expect to get from Customs and Excise adds up to £290,000,000.

When I come to the rest of the revenue I have to base my calculations upon an analysis of past facts and figures. Anyone can see that items like Crown lands, Sundry Loans and Miscellaneous Receipts are not greatly affected by an increase in the prosperity of the country. Even Estate Duties are not likely to be materially affected by a change in those conditions except in so far as there may be a variation in the value of stocks and shares. But very few people seem to realise that in the case of Income Tax and Surtax the revenue to be received this year does not depend upon any prediction of what the course of trade will be this year. It depends upon the profits and income of past years. There is indeed one special feature of this year
which forms an exception to the general rule. We know that this year we shall receive a full year's receipt from tax-papers with earned incomes from whom the Exchequer received only three-fourths of a year's produce last year on account of the smaller instalment of tax that was payable on 1st January. I estimated the cost of that concession last year at £12,000,000 and therefore I can count upon a gain of that £12,000,000 this year. But the main bulk of the revenue from Income Tax is that which is payable on 1st January on the assessment for the current year.

The assessment for the year 1934 will be based upon the profits of the year 1933. The Board of Inland Revenue, with the assistance of traders—I should like once more to express my obligations to them—are in a position to say with considerable precision what were the profits of 1933 upon which my revenue this year must depend. The great fall in profits which has been going on since the world depression set in ceased in 1933, but it did not cease early enough to affect the whole of the assessments for this year. Hon. Members are no doubt aware that different businesses make up their accounts to different dates. Some make up their accounts to the end of June or the end of September and assessments on them for this year will depend on the profits made during a year which ended as long ago as June or September, 1933. Similarly others make up their accounts to the end of December or to the end of March, and in these cases the year of profits would be the year which ended on the 31st December, 1933, or the 31st March, 1934. A careful examination of all these different accounting periods shows that during the first half of 1933 profits were still actually falling. It was only during the second half of that year that there was a recovery which counterbalanced the fall in the earlier half of the year and which enables me to budget for the first time since 1929 for no fall in the assessment under Schedule "D." I wish I could budget for a rise, but although the omens for the future are favourable, the ascertained facts for the year 1933–34—facts upon which my receipts for this year depend—preclude me from taking that course. I estimate my revenue from Income Tax at £240,000,000
as against £229,000,000 which I received last year.

I now come to Surtax. Surtax, of course, lags a year behind the Income Tax. The Surtax for the year 1934 is based upon the Income Tax income of 1933, but the Income Tax assessment for 1933 is based upon the profits and incomes of 1932. Therefore the yield of Surtax this year depends upon what happened in 1932 when profits were still falling, and I must allow for a further fall in the yield of Surtax. I cannot put it at more than £50,000,000. When, I come to Death Duties, I have already pointed out to the Committee that the very high figure of last year was abnormal and was due to one single very large payment. I cannot expect that again, and I put my estimate of the yield from Death Duties at £76,000,000. Stamp Duties, I think, should show further growth during the year, and I estimate that they will yield £25,000,000. The yield of Land Tax and Mineral Bights Duty is fairly stable at £800,000, and I do not put the yield from Excess Profits Duty and Corporation Profits Tax at more than £1,200,000.

My total Inland Revenue then, adds up to £393,000,000, made up of £240,000,000 from Income Tax, £50,000,000 from Surtax, £76,000,000 from Death Duties, £25,000,000 from Stamp Duties, and £2,000,000 for the rest.

Other heads of Revenue will give me £44,200,000. I put the Exchequer share of Motor Vehicle Duty at £5,200,000, which is the same as was received last-year. The Post Office Exchequer receipts, that is to say, the gross revenue less gross expenditure, I put at £14,000,000, which is an increase of £2,300,000 over the 1933 estimate, and £900,000 more than the actual receipt. If I deduct the payment of £2,000,000 to the Post Office Fund which I have already mentioned that gives me a net Budget receipt of £12,000,000 from the Post Office. Crown Lands Revenue I put at £1,220,000, and Sundry Loans at £3,800,000. My estimate for Miscellaneous Receipts is £20,000,000. This is £10,000,000 below my estimate of last year, but it will be remembered that last year's receipt was swollen by a special item of £10,000,000 from the 5 per cent. War Loan Depreciation Fund.


SURPLUS.


Adding up all these items the total estimated revenue for 1934–5 on the existing basis of taxation amounts to
£727,200,000


The estimated ordinary expenditure I have already given at
£698,100,000


and I am therefore left with a surplus of
£29,100,000

If there are any hon. Members who have allowed themselves to dwell too hopefully upon some of the rather wild guessing which has been going on, I am afraid that that figure may have been somewhat disappointing, but I think, when they have had time to adjust their ideas a little and make a careful examination of the particulars I have submitted to the Committee, they will see that there never was any foundation for the expectation of a phenomenal surplus this year. In making my calculations, I have allowed for substantial increases in all those items which can be expected to reflect quickly the increase of prosperity, such as Customs and Excise and Stamp Duties, but for the bulk of the revenue I have to bear in mind that it cannot be very materially affected this year by the better conditions of the country. The improvement will come in later, when, as I foresee, I shall be very glad of it in order to meet inevitable additions to our expenditure. After all, I do not think there is any reason why anybody should be disappointed. The sum of £29,000,000, if not dazzling, is at any rate a very substantial surplus. It is the largest for 10 years, and it is sufficient to enable me to begin the long awaited process of relief from the burdens and sacrifices of the last few years.

MINOR CHANGES.

Before I enter upon a discussion of that subject, I will ask the Committee to bear with me for a few minutes while I mention one or two minor changes which will require amending legislation in the Finance Bill. A recent judicial decision has revealed a flaw in the statutory machinery for the collection of tax upon mineral rents and royalties. I shall therefore have to submit to the Committee proposals for putting this matter upon a proper footing and also for maintaining the validity of the deductions of tax made in accordance with the then prevailing
practice, from past payments of rents and royalties.

I have also to deal with a technical point which has arisen on Estate Duty. This relates to the extent of the charge of that duty in a limited class of case where a claim arises under Section 2 (1) (d) of the Finance Act, 1894, in respect of the beneficial interest accruing or arising at death in certain annuities or other interests. A Resolution will be required and the necessary Clause will be embodied in the Finance Bill. Neither of these two changes which I have mentioned will add anything to the revenue; they are merely designed to safeguard it.

I have to mention a matter connected with the preference upon the imports of Colonial sugar. As was announced in the Press on the 29th of March last, it has been found necessary to make a change in the form of that preference to correct a preferential bias in the duty which, especially since the depreciation of the Canadian dollar, has had the effect of diverting increasing quantities of West Indian sugar from Canada to the United Kingdom, to the great embarrassment of all concerned. In agreement with my right hon. Friend the Colonial Secretary, I propose to replace the scheme of preference which was described in my Budget speech in 1932 by a new scheme which will give benefits to the Colonies of about the same value as those which they had been receiving, but which will permit the traffic in sugar to flow freely either to Canada or to this country in accordance with the normal demands of trade. We expect to accomplish that purpose by reducing the general preference on all Colonial sugar to the old rate of 3s. 9d. per cwt., and we propose to replace the quota preference of 1s. per cwt. which now is given upon a limited, but variable, quantity of sugar by a new quota preference of 3s. per cwt. on a fixed quantity of 360,000 tons per annum. The duration of this scheme will be three years, and, like the old scheme, will be subject to variations in price. The value to the Colonies of the old scheme as it was applied to their export of sugar to all destinations was £1,055,000. The corresponding figure under the new scheme is £1,080,000, so that the Colonies should be slightly better off on the whole. On the other hand, the Exchequer will be slightly out of pocket, but we have reason
to suppose that the small loss that will fall upon the Exchequer will be a great deal less than the loss to the revenue that would have been involved if no alteration had been made and if the whole of the Colonial output of sugar had been diverted to this country. My right hon. Friend and I are agreed that this is a fair arrangement and one which it would be to the advantage of all concerned to adopt.

I shall have a Resolution on two small points connected with the Hydro-Carbon Oil Duty, and there will be Resolutions authorising increased duties on are lamp carbons and patent leather. Also, there will be a Resolution covering some Amendments in the Import Duties Act, which have been found necessary.

There is one other small matter for which I shall have to provide in the Finance Bill. Under various Statutes His Majesty's Government have in the past given guarantees on loans raised by certain foreign Governments, by companies and by public utility undertakings. In some of these cases the prospectus of the loan named a definite date of redemption and also gave the borrower the right to redeem at an earlier date. It would now be very much to the advantage of the borrower to exercise that right if he could borrow the money at a reduced rate of interest. There are a few cases in which the borrower could do that on his own unaided credit, but if the guarantee of the Treasury could be extended to the new loans, that is the loans which would be raised for the purpose of converting the old fund, a very considerable saving of interest would ensue. This arrangement is definitely to the (advantage of the Treasury. In the first place, it means that there is a smaller amount of interest to find and, therefore, a diminution in the risk which is covered by the Treasury guarantee and, indirectly, it also helps because every such conversion consolidates the forces that are making for cheap money, which is very much to our interest. Therefore, I propose in a Clause of the Finance Bill to take power to guarantee new loans raised for the purpose of converting existing guaranteed loans. I need say no more to the Committee than that when they see the Clause they will see that it is very strictly drawn and confines the amount that can be so guaranteed to the outstanding amount of the principal of the existing loan.

MOTOR VEHICLE DUTIES.

I have a concession to announce which I can provide without trespassing for any practical purpose upon my Budget surplus. It has always been the policy of His Majesty's Government to try and provide conditions under which industry can expand and give rise to further employment, wherever that is possible. Among the industries that have shown a capacity for expansion there is none more conspicuous than the motor car industry. The increase in production in recent years has really been phenomenal, but it has been represented to me that the export trade in private cars is not quite maintaining its earlier resiliency. In particular, our manufacturers are finding some difficulty in meeting the overseas competition of foreign cars whose horsepower in relation to their size and weight is greater than our own. I do not want to suggest that our low-powered cars are unsuitable for export or that their export shall not be increased in every possible way, but I am informed that the trade has been to some extent hampered by the heavy horse-power tax which is levied in the United Kingdom, and that if any reduction could be made in the rate of that tax it would be likely to lead to an expansion in production in all kinds of private ears in this country, which in turn would react favourably upon the export trade. I have been impressed by the weight of that argument, and I am anxious to do something to meet it.

I am, therefore, proposing that, as from the 1st January next, the present tax of £l per horse-power shall be reduced by 25 per cent. to 15s. There will be a corresponding reduction in the duty upon motor cycles. The details of the proposal will be found in the White Paper. The cost I estimate to be £2,200,000 this year and £4,000,000 in a full year. That cost under the existing law would fall to be borne as to two-thirds by the Road Fund and one-third by the Exchequer, but in the present circumstances and with the many claims which are being made upon my surplus, I did not feel that I can undertake this year to provide any considerable sum for this purpose. I, therefore, consulted with my hon. Friend the Minister of Transport, and we have agreed upon the following arrangement: The Exchequer's share of the produce of the Motor Vehicle Duties in present cir-
cumstances is to be subject to a minimum of £5,000,000, rather less than the sum that I should expect to get if no alteration had been made at all. By that arrangement, therefore, the cost of the concession that I have described will fall mainly upon the Road Fund. There is another concession, a small one, affecting all classes of cars, which I have to announce, and that is that I propose to abolish the fee of 10s., or 5s., as the case may be, which is now charged upon the surrender of licences, which has been so charged since 1924, and which I am told has given rise to a considerable amount of irritation. This change will come into force upon the passing of the Finance Bill.

SALARY CUTS: PARTIAL RESTORATION:

I come now to the momentous question: What am I to do with our surplus. I have given a great deal of anxious thought to the question of the distribution of the surplus, and I have formed the impression that a good many other people have been devoting their attention to the same subject. Quite a large proportion of them have been good enough to give me their advice, frequently coloured, as one would expect, by their own experience or their own interests. I hope that I have allowed my mind to consider freely all the suggestions that have been made to me, but in the end I came to the conclusion that I must found myself upon two general principles. The first of these principles I do not think I could put in better words than were used last December in an article written by my predecessor, Lord Snowden:
A surplus now must in justice be devoted, as far as it will allow, to relieving those classes who suffered when the crisis was acute.
The fact is, that the cuts in the rates of unemployment payments and in salaries and the additional taxation which was imposed at that time were considered by the Government of the day as a temporary expedient to meet a temporary emergency. They were accepted by the people of this country in that spirit. I do not myself interpret that understanding so literally as to feel compelled to put everything back exactly where it was before 1931. That would be to fetter the discretion of the Chancellor of the Exchequer in a way which would go far be-
yond what is reasonable. Broadly speaking, however, I have considered myself precluded from considering other claims for relief, however well founded they may be, until something like the equivalent of restoration has taken place.

Hon. Members will have realised that the resources at my disposal this year are not sufficient to enable me to effect complete restoration, and that is where the second principle comes in. The measures to which I have alluded may be divided into two categories. On the one side there were the increases of taxation, and on the other side there were the various cuts in the rates of unemployment payments and in emoluments. My second principle is that, since I have not enough to effect complete restoration, what I have should be distributed as fairly as possible between these two categories in proportion to the contribution that each of them made.

I take first the question of the cuts. I propose to introduce legislation and Supplementary Estimates to provide for the restoration of one-half of those cuts as from the 1st July next. Leaving out the unemployed for the moment, the cost to the Treasury of this concession will be £5,500,000 in a full year and £4,000,000 this year—£4,000,000 being therefore the amount of the Supplementary Estimate.

UNEMPLOYMENT BENEFIT CUT: FULL RESTORATION.

The Committee must recognise that these figures do not and cannot cover the cost of any alteration in the benefits under the Unemployment Insurance Scheme. I remember that, in the course of the discussions on the Unemployment Bill, a good deal of concern was manifested by hon. Members in different parts of the House lest the position of the unemployed insured persons under the scheme should be prejudiced in relation to the restoration of cuts by the provisions of the Bill. It was pointed out that it was not the Chancellor of the Exchequer, but the Statutory Committee from whom the initiative must come for any restoration of cuts, and that there was no certainty that the Statutory Committee would use that initiative in such a way as to make the restoration of cuts in benefits coincident in amount and in time with any restoration of cuts which might be made by the Chancellor of the Exchequer for those who Were outside
the scheme. At the time it was extremely difficult for me to give a full explanation to the Committee. I could not have done that without disclosing, or appearing to disclose, budgetary intentions, which, in fact, had not at that time been decided upon. I therefore had to confine myself to a rather dogmatic assertion that there was nothing in the Bill which would justify any statement that it would be impossible to restore the cuts in benefit at the same time as the cuts in the emoluments of other classes.

As a matter of fact, my view has always been that there was one exception to the general rule that if we were going to set up a Statutory Committee to give us advice as to the best way, in the interests of the insured, of distributing any surplus there might be in the Unemployment Fund, we should not anticipate the work we were going to entrust to them by making inroads upon that surplus in advance. The one exception concerned the restoration of the cuts in the unemployment benefit. Those cuts were part and parcel of the whole plan of 1931. To have made any distinction which would have been unfavourable to those who were inside the insurance scheme merely because the scheme had been altered, would have been to commit a very gross injustice. Therefore, now that we are proposing to make some partial restoration of cuts outside the scheme, the Government, in my opinion, could not do less than ensure, by legislation, for an equal restoration to those inside the scheme as to those outside it. But I think the Committee will see that even that course would not have completely solved the difficulty. It would still leave to the discretion of the Statutory Committee the restoration of the second half of the cut. There would still be no certainty that the Statutory Committee would choose to restore the second half of the cut at any time when the Chancellor of the Exchequer found it possible to complete the full restoration to the classes outside the scheme, but I am sure everybody here will agree that there must be no uncertainty in this matter. I am sure that everybody will want, if there is to be any inequality in this process of restoration, that the unemployed should come first. Whatever may be the sufferings and hardships of those who may have had their income reduced, their position
must still be preferable to that of the unemployed with no income at all.
Therefore, I propose to introduce a new Clause into the Unemployment Bill which will provide for the full restoration of unemployment benefit as from 1st July. That is on the assumption, which I may almost take as a certainty, that the Bill becomes law by 30th June. The Committee is aware that the maximum rates of transitional payments are regulated by Statute according to the benefits under the unemployment insurance scheme. Therefore, this full restoration of unemployment benefit of which I have just spoken naturally carries with it a corresponding alteration in the maximum rates of transitional payments. It is rather difficult, owing to the needs basis of payment, to estimate exactly what that is likely to cost. I am proposing that there should be a Supplementary Estimate in respect of it of £3,600,000, which I estimate will be the cost to the Exchequer of the change during the present year. That comes out of the Budget surplus.

Although in the Budget, I am not strictly concerned with the cost of unemployment insurance benefit, I think hon. Members will probably want to know whether there is any likelihood that this restoration of the unemployment benefit cut will produce any seriously prejudicial effect upon the finances of the Insurance Fund. Fortunately, there is no need for any anxiety upon that score. Under the Unemployment Bill, after making the provisions embodied in the Bill, the fund becomes self-supporting on the basis of a level of 2,500,000 on the live register of unemployed. The last published figure of unemployment was about 2,200,000, and we expect to have further falls during the year. But by every 100,000 that the figures of unemployment fall the surplus in the fund rises by something over £3,000,000. Therefore, if at the end of the year the average level turns out to be 2,300,000, we might expect a surplus of £6,500,000 or thereabouts, and if, as I must say seems more likely, the level should turn out to be 2,200,000 then there would be a surplus approximately of £10,000,000 in the fund. The cost of the restoration of the cut is £4,800,000 in a full year. Therefore, I think the Committee will agree with me that not only can the fund easily bear this new charge upon it, but, after providing for the Debt service as embodied in the Bill there
will still be every probability of a very substantial surplus for the consideration of the Statutory Committee to which, I have no doubt, they will give very prompt attention.

INCOME TAX REDUCTION.

I turn to the question of the remission of taxation. The concessions which I have announced have now reduced my surplus to £21,300,000, so that the possibilities are strictly limited. As far as indirect taxation is concerned, I was driven last year to remove the extra tax upon beer in order to safeguard the revenue. Much as I should have liked to have modified the Entertainments Duty, I am afraid it is impossible for me to contemplate this year any further remission of indirect taxation.

Now I come to Income Tax. I should like to quote again from that article written by my predecessor in December last:
The Income Taxpayers, large and small, made by far the largest contribution to meeting the national emergency in 1931.
In fact, out of £81,500,000 of extra taxation which was imposed at that time, the Income Tax payers found no less than £57,500,000, or 70 per cent. of the extra taxation. Although their burdens were already heavy, they shouldered an extra 6d. on the standard rate; there were general reductions in the Income Tax allowances; and there was an addition of 10 per cent. to the Surtax charge upon the larger incomes. Moreover, all these increases of taxation took effect from April, whereas the cut only became operative in the autumn. I think, too, one must not forget that since 1931 many of these Income Tax payers have also suffered a further serious reduction in their incomes owing to the operation of the Conversion Loan. Therefore, the case for some remission is overwhelming, and the only question is what form it should take. In deciding upon the form, I thought I ought to consider the effect of any remission not merely upon the individual taxpayer, but upon the country as a whole. Looking at it from that point of view, I had no hesitation in coming to the conclusion that the relief which would confer most direct benefit upon the country, which would have the greatest psychological effect, and which would impart the most immediate and vigorous stimulus to the expansion of
trade and employment, would be a reduction in the standard rate of Income Tax. Accordingly, I propose to remove the 6d. imposed in 1931, at a cost of £20,500,000 this year and £24,000,000 in a full year.

FINAL BALANCE-SHEET.

It is now possible for a final balance to be struck.


The estimated revenue for the year is
£706,500,000


and the estimated expenditure
£705,700,000


leaving me a prospective margin of
£800,000.

I have but very few more words to address to the Committee. It would be quite unreasonable on my part to expect universal agreement with the financial policy I have pursued since I have held my office. Differences of temperament, differences of political tradition and differences of judgment in weighing up opposing considerings naturally lead to different conclusions, and it is very possible that others if they had been in my place would have adopted other methods. We can only speculate now-upon what the results of such other methods might have been, but, if we want to estimate the wisdom of the course we have actually pursued, we might perhaps usefully cast a glance at what is happening elsewhere. I am quite certain that any comparison we may make will show that we have nothing to regret.

Where else outside the British Empire, where else in the world can you find a country which has been able to show a substantial surplus upon its Budget in two successive years? While in other countries cuts in pay and reductions in social services are still having to be faced, while elsewhere the taxpayer is still searching in vain for any relief from his burdens, while he is on the contrary forced to contemplate still further sacrifices and still further contributions to the State, here at any rate we can feel that we have passed the worst and can venture to remove a substantial portion of the load we have been carrying without fearing that presently we shall have to put it back.

The British people no doubt have their faults. They are slow to realise the danger and slower still to change their habits or their methods even when the necessity for a change stares them in the face. But they have one supreme virtue
which you will find in every class of the community. Let them once be convinced that the country is in danger, and there is no sacrifice whether of comfort, money, health, or even life itself which they will not make. When the need arose in 1931, the sacrifices which were demanded then from our people were accepted by them cheerfully, and they have since been borne with unexampled courage and patience. Their truest reward is that they saved their country. I rejoice to think that at last it has been possible to afford them some relief from their burdens, and, believing as I do that this relief will itself hasten the process of recovery, I look forward with confidence to further progress in the same direction in the new financial year.

Orders of the Day — CUSTOMS.

COLONIAL SUGAR, MOLASSES, ETC.

Motion made, and Question proposed,
That—(a) as from the eighteenth day of April, nineteen hundred and thirty-four, the customs duties in respect of sugar, molasses, glucose and saccharin consigned from and grown, produced or manufactured in a colony or other country to which section two of the Finance Act, 1932, applies, shall be at the rates specified in the following two sub-paragraphs instead of at the rates theretofore chargeable—

(i) in the case of sugar accompanied by a quota certificate issued on or after the said eighteenth day of April, the duties shall be at the rates set out in the following table:


Article.
Rate of duty.


s.
d.


Sugar of a polarisation exceeding 99 degrees the cwt.
2
4.7


Sugar of a polarisation exceeding 98 degrees but not exceeding 99 degrees the cwt.
1
6.3


Sugar of a polarisation not exceeding 76 degrees the cwt.
0
9.6


Sugar of a polarisation exceeding 76 degrees and not exceeding 98 degrees
Intermediate rates varying between 9.6d. and 1s. 6.3d. per cwt.

(ii) in the case of sugar not accompanied by such a certificate and in the case of molasses, glucose and saccharin,
the duties shall be at the preferential rates, respectively, chargeable under Section eight of the Finance Act, 1925, and Section four of the Finance Act, 1928, on sugar, molasses, glucose and saccharin being Empire products:

(b) the quantity of sugar in respect of which quota certificates are issued shall not in the financial year ending on the thirty-first day of March, nineteeen hundred and thirty-five, and subsequent financial years exceed three hundred and sixty thousand tons:

(c) in the case of sugar and molasses produced in the United Kingdom from material on which there has been paid a Customs duty at a rate chargeable by virtue of this Resolution, drawback shall be paid in accordance with the provisions of Section four of, and the Second Schedule to, the Finance Act, 1928, except that in the application of the said Schedule to sugar and molasses produced as aforesaid from sugar on which there has been paid a duty at a rate chargeable by virtue of sub-paragraph (i) of paragraph (a) of this Resolution, the scales set out in the following tables shall be substituted for the scales set out in Part II of the said Schedule:


TABLE I.


Scale applicable in case of sugar.


Degree of polarisation.
Rate or amount of drawback.


Of a polarisation exceeding 99 degrees.
Where the rate of duty paid was 2s. 4.7d. the cwt., a drawback at the same rate.


Where a rate of duty less than 2s. 4.7d. the cwt. was paid, a drawback at the rate of 1s. 7.4d. the cwt.


Of a polarisation not exceeding 99 degrees.
A drawback equal to the duty chargeable under sub-paragraph (i) of paragraph (a) of this Resolution on sugar of the like polarisation.




TABLE II.


Scale applicable in case of molasses.

Nature of molasses.
Amount of drawback.



s.
d.


If containing not more than 50 per cent. of sweetening matter and weighing not less than 14 pounds to the gallon …the cwt.
0
4½


If containing more than 50 percent. but not more than 60 per cent. of sweetening matter the cwt.
0
7


If containing more than 60 per cent. but not more than70 per cent. of sweetening matter the cwt.
0
9


If containing more than 70 per cent. but not more than 80 percent. of sweetening matter the cwt.
1
0½


If containing more than 80 per cent. of sweetening matter the cwt.
1
2½

And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.—[Mr. Chamberlain.]

5.23 p.m.

Mr. ATTLEE: It is not customary on these occasions to have a long Debate but to exchange a few courtesies and remarks and leave the main Debate to be opened to-morrow. I do not intend to do other than follow the usual custom to-day. I should like to congratulate the Chancellor of the Exchequer on the brevity and businesslike manner of his statement. It was a statement with few flourishes. There were a few high lights, and, until the end, low lights, and he got through his Budget statement in the shortest time that I can remember. I should like to congratulate him on the matter of his statement but I regret that I am entirely unable to do so. I think it is quite the meanest Budget on record. The right hon. Gentleman has been wonderfully generous at other people's expense. There were some hon. Members who thought that we should have cheered wildly when we heard some of the announcements of the Chancellor of the Exchequer, but we were rather too wary to be caught like that. We know our Chancellor of the Exchequer.
The short point I want to make is that for all the sufferings of the unemployed he is getting off by a cheap contribution of something like £3,500,000, not much more than the concession he is giving to the motorists. The poorer members of the community even among Income Tax payers are being put aside for the claims of the rentier class. It is a shifting of taxation from the direct taxpayer to the indirect taxpayer. The proportions are being altered against the indirect taxpayer, against the consumer, year after year, and even when dealing with Income Tax the right hon. Gentleman continues to inflict the greatest burden on the poorest. After all, the surplus which the right hon. Gentleman has is derived from the sufferings of the poorest in the community.
I would only draw attention to one, other curious feature of the statement. We have heard extraordinary little of the fact that we are not paying the interest on the American Debt. I do not in the least object to our not paying the interest, and I hope to see a time when the world
will throw off the burden of the moneylenders to a greater extent. I welcome the attitude on the other side of the House that although we owe this money we are not going to pay it. I hope that a token payment will be introduced more widely. I only hope that the right hon. Gentleman's statement will be as welcome in America as it is in this country. Let me draw attention to one interesting page in the statement, page 6, in reference to the melancholy list of our bad debts. We have had no reference to them at all. I shall not detain the Committee further except to say that we shall oppose this Budget. We regard it as an insult to the unemployed, from whom millions and millions have been taken, that they are being given, in exchange, a few paltry words of thanks, a few words of insolence and £3,500,000 and told that they must rest content.

5.30 p.m.

Sir HERBERT SAMUEL: It has been the custom in recent years to abstain from controversial discussions on the first day of the Budget statement and to reserve to the following and succeeding days any general criticism or elaborate comments upon the Chancellor's statement for the year. I, for my part, shall conform to that convention. I was sorry last year that the Leader of the Opposition, whose continued absence we all greatly deplore, departed from that custom and engaged in a somewhat long criticism of all the proposals which had just been laid before the Committee. I am glad that to-day my hon. Friend the Member for Limehouse (Mr. Attlee) has returned to the earlier practice although he could not resist the temptation of making a few comments, some of them, in our view, somewhat exaggerated, with respect to the particular proposals laid before us to-day. My purpose in rising is to express what I feel sure is the universal feeling of this Committee, a feeling of appreciation of the manner in which the Chancellor of the Exchequer to-day has performed his most onerous and responsible task. For the manner of presentation we all can have nothing but praise although, with respect to the substance of the statement, the approval of some of us may be qualified.
As I have said, I shall resist the temptation to engage in any critical discussion on this occasion, but I cannot
refrain from expressing in a single sentence the surprise that some of us feel at the fact that the Chancellor, having laid down the general principle that the resources at his disposal would allow him to relieve, to the extent of one half, the burdens imposed by the National Government of 1931, should have, quite rightly in our view, made an exception with regard to the unemployed and restored the whole of the cuts—of that we entirely approve but, on the other hand, has made no restoration of the allowances to the smaller Income Tax payers, while he has removed not one half but the whole of the additional 6d. imposed on the standard rate of Income Tax. That is all I wish to say upon these matters. The Chancellor's statement was comprehensive, clear and admirably simple. We have indeed changed the style of Parliamentary presentation from what it was in the 19th century. There is in the Budget statement nowadays little rhetoric. Modern taste rejects the ornate, whether in Parliamentary oratory or in architecture. We have had to-day a speech of severe simplicity and of the most admirable lucidity. I am sure that the whole Committee congratulate the Chancellor of the Exchequer upon his statement and thank him cordially for the manner in which he has presented it.

5.34 p.m.

Mr. MAXTON: I rise with the spokesmen of the various other parties—[HON. MEMBERS: "Hear, hear!"] The cheers from above the Gangway which have greeted that remark appear almost as restrained as the Chancellor's announcement. I rise not to enter into any controversy on the Budget statement but to offer, with the others who have spoken, my congratulations to the right hon. Gentleman. I do so fully and without any reservations. The other party spokesmen have made reservations. They presumably expected more from the National Government than I did. Their political associations and philosophies are probably more in harmony with those of the National Government than mine are and I came here to-day expecting nothing either from the National Government or from the capitalist system. I have heard the announcement of the restoration of the cuts to the unemployed and for that
I thank the Chancellor of the Exchequer without reservation. But I do not admit for one moment that he is the only person responsible for that situation having been reached to-day. One of the great principles of democracy, I think, is that a great many forces contribute to a final result. I have been completely open in my congratulations to the right hon. Gentleman and, therefore, I hope he will not refuse some share of the credit to the 2,000 unemployed men who came as hunger-marchers to London and stated the view that these cuts ought to be restored. I am sure at this stage of the afternoon after his arduous task the Chancellor would rather have a cup of tea than any more bouquets, and I conclude at this point.

5.36 p.m.

Sir WILLIAM DAVISON: I have on previous occasions been allowed to say a few sentences following on the Budget statement, as chairman of the Income Tax Payers' Society. On their behalf I wish to thank the Chancellor of the Exchequer for the relief he is affording them from a burden which they have borne so long and so patiently. I entirely associate myself with the restoration of the cuts and I do not wish to be misunderstood in that respect. In the criticisms which have been made on the Chancellor with regard to Income Tax, however, I think hon. Members have forgotten that the burden of Income Tax and Supertax is greater at the present time than it was during the War, and it is a very serious matter for the country to be living under war taxation in time of peace. While we are grateful that something has been done to relieve that burden, I trust that in the forthcoming year steps will be taken, in the interests of the country, even more than in the interests of the Income Tax payer to see that this war rate of taxation is reduced to a proper level.
Last year when the Chancellor of the Exchequer reduced the Beer Duty because it was ceasing to be a revenue-producing tax I ventured to 'suggest to him that the same consideration applied to the Income Tax. I am glad that this year he has recognised that fact and I am sure that, from the revenue point of view, that is a most wise recognition. Although the amount of tax received this year exceeded the Budget estimate, it was £22,000,000 less than had been received
in the previous year. It has steadily diminished during the last three years and is £59,000,000 less than it was three years ago. It is interesting to recall that 60 years ago when Gladstone introduced his Budget he received the cheers of the House for reducing the Income Tax from 3d. to 2d. in the pound. We are much obliged to the Chancellor for the statesmanlike Budget which he has opened to-day. In spite of the critical remarks made by the Deputy-Leader of the Opposition, I am sure it will he received by all classes of the community as an eminently fair one and one which does credit to the Chancellor and the Government.

5.38 p.m.

Sir GEORGE GILLETT: It seems almost a presumption to add to the congratulations already offered to the Chancellor of the Exchequer for the very clear statement which he has made to the Committee, but I would like personally to thank him and to say how some of us who sit on these benches appreciate his action in making the first return to prosperity the occasion for restoring the cuts. Two years ago, some of us had to take a very difficult decision in asking the unemployed to accept the cuts. It is a special satisfaction to me that the first duty which the Chancellor has undertaken in this Budget has been to restore those cuts. I am sure, to the unemployed, it will matter little from what source the money comes. The chief thing for them will be that they will receive the larger payment in the future. In regard to the Income Tax there is a great deal to be said for the action of the Chancellor in taking off sixpence. Although his action may be open to the criticism already made that Income Tax payers are still at the disadvantage of being deprived of certain benefits which they had two years ago, yet I cannot help thinking that the interest of trade and the general interest of the country will best be served on the lines which the Chancellor has taken.

5.40 p.m.

Mr. MACQUISTEN: I also congratulate the Chancellor of the Exchequer and I would add that we must congratulate ourselves on the fact that we had a citizen in this country like the late Sir John Ellerman whose estate contributed so much to the Revenue. That is something for the hon. Member for Bridgeton (Mr. Maxton) to keep in mind. That the un-
employed and the community in general should benefit to such an extent from that estate seems to be some justification for what the hon. Member chooses to call the capitalist system. The Dollar Exchange Account and one or two other things have assisted and in this Budget, although we have the vista of prosperity open to us, prosperity has not yet been reached. We are, however, on the road.
May I mention a typical Highland industry for which the Chancellor has done nothing. I refer to the persecuted industry of distilling. It used to belong to the Highlands. The Highlander made his own whisky and sold a little of it and then he was told by the Government of the day that it must all be kept to the distilleries and private distillation was prohibited. Now the distilling industry has shrunk as much as the beer industry. It is down to less than one-third of what it was before the War. An article which costs a shilling or two to make is taxed to about 20 times its value. It was originally intended as a medicine and is meant to be used for medical purposes, but poor people to-day who are suffering from illness cannot afford that medicine. I wish that fact were more generally recognised and that the Chancellor of the Exchequer by a reduction of the duty on this article would make it possible for the sick poor to get it when it is ordered for them by a medical man. I am satisfied that if he reduced the whisky duty to such an extent as would enable whisky to be sold at 10s. a bottle—so that a man would not have to destroy £1 to the extent of 12s. 6d. in buying a single bottle—about double the quantity would be sold. In that case a man would have two bottles instead of one. There would be no loss to the revenue and it would add a great deal to the comfort, well-being and health of the people.
It would also help Scotland, because as I have said this is a typical Scottish industry. In my constituency there are a score of distilleries and there are many in other parts of Scotland, numbers of these have been standing idle. America, I am glad to say, has now learned the lesson of prohibition. We all know how unreasonable the Americans have been in this matter. Now they have had their lesson and we have seen there the effects of prohibition. We are enforcing prohibition
in this particular matter by taxation, and we are only enforcing it on the poor people. We injure the industry and the people, and I think that the Chancellor of the Exchequer should take the earliest opportunity of bringing the duty down to more reasonable proportions. It was all very well in the days when Chancellors had nothing else to tax. They simply clapped it on beer, whisky, and tobacco, but now they have innumerable articles that can be taxed. A lightening of this duty would assist the agriculture of Scotland, for it should be remembered that barley is taxed at the rate of £300 an acre at the least. Apart from that matter, I congratulate the Chancellor of the Exchequer, but speaking as a man from the Highlands and from a distilling county, I am deeply disappointed that Scotsmen have again to to be subjected to this overwhelming burden.

Question put, and agreed to.

HYDROCARBON OILS.

Resolved,
That—(a) where on or after the first day of May, nineteen hundred and thirty-four, any dutiable hydrocarbon oils on which duty has not been paid are used in a refinery otherwise than for the purpose of generating heat, light, or power for consumption in the refinery, the same duty shall be charged and the same rebate shall be allowed in respect thereof as would be chargeable or allowable on the importation of the like oils:
Provided that—

(i) oils shall not be deemed to have been used by reason only that they have been subjected to a process of purification or blending;
(ii) where oils are subjected to any process resulting in the conversion thereof into other oils or solid or semi-solid residues, such quantity thereof as has been so converted, or has been wasted in the course of the process, shall not be deemed to have been used by reason only of its subjection to that process;
(iii) nothing in this paragraph shall affect the charge of duty or allowance of rebate on oils delivered from a refinery:

(b) where a refinery is not used primarily for the purpose of subjecting hydrocarbon oils to any such process as aforesaid, the Commissioners of Customs and Excise may require that customs duty shall be charged and rebate allowed on the removal of such oils to the refinery instead of on their delivery therefrom, but where rebate has been allowed on the removal of oils to a refinery
and those oils are converted in the refinery into light oils, an amount equal to the rebate shall be repaid:
(c) as from the said first day of May, any customs duty payable or rebate or drawback allowable in respect of any artificially heated hydrocarbon oils (not being light oils) having a temperature exceeding sixty degrees Fahrenheit shall be payable or allowable on the number of gallons which the oil would have measured if the temperature thereof had been sixty degrees Fahrenheit.
And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

ARC-LAMP CARBONS.

Resolved,
That, as from the eighteenth day of April, nineteen hundred and thirty-four, the customs duty chargeable on arc-lamp carbons under Part I of the Safeguarding of Industries Act, 1921, shall, instead of being at the rate of one shilling per pound, be at the following rates:—



per lb.



s.
d.


Carbons exceeding14 millimetres in diameter
5
0


Other carbons
7
6


And it is hereby declared that it is expedient in the public interest that this Resolution shall Save statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

PATENT LEATHER.

Resolved,
That as from the eighteenth day of April, nineteen hundred and thirty-four, any duty of customs chargeable on patent leather not forming part of another article and on goods composed wholly of patent leather shall, instead of being charged under Part I of the Import Duties Act, 1932, be charged under Section one of the Ottawa Agreements Act, 1932, and shall be a duty equal to fifteen per cent. of the value of the goods:
Provided that—

(a) this Resolution shall not apply to any goods which fall within some class or description of goods on which an additional duty is for the time being charge-able under Section three of the Import Duties Act, 1932, if the aggregate amount of that additional duty and of the general ad valorem duty exceeds fifteen per cent. of the value of the goods;
(b) Sub-section (2) of Section one of the Ottawa Agreements Act, 1932, shall not apply in relation to any duty chargeable by virtue of this Resolution.
And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

IMPORT DUTIES (MISCELLANEOUS AMENDMENTS).

Resolved,
That it is expedient to amend the Import Duties Act, 1932, and the enactments amending that Act in the following (among other) particulars—

(a) the Treasury shall have power, on the recommendation of the Import Duties Advisory Committee,—

(i) to order that, as soon as any class or description of goods becomes chargeable with the general ad valorem duty by virtue of an order made under Section seven of the Finance Act, 1932, an additional duty shall be charged in respect thereof under Section three of the Import Duties Act, 1932; and
(ii) to revoke any scheme for the allowance of drawback made under Section nine of the Finance Act, 1932:

(b) proviso (a) to Sub-section (5) of Section nineteen of the Import Duties Act, 1932 (which provides that orders made under Section one of that Act may not be varied or revoked) shall cease to have effect."

INCOME TAX.

CHARGE OF TAX.

Resolved,
That (a) Income Tax for the year 1934–35 shall be charged at the standard rate of four shillings and sixpence in the pound, and, in the case of an individual whose total income from all sources exceeds two thousand pounds, at such higher rates In respect of the excess over two thousand pounds as Parliament may hereafter determine;
(b) all such enactments as had effect with respect to the Income Tax charged for the year 1933–34 shall have effect with respect to the Income Tax charged for the year 1934–35.
And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

HIGHER RATES OF INCOME TAX FOR 1933–34.

Resolved,
That Income Tax for the year 1933–34 shall be charged, in the case of an individual whose total income from all sources exceeded two thousand pounds, at the same higher rates in respect of the excess over two thousand pounds as were charged for the year 1932–33.
And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

INCOME TAX ON CERTAIN RENTS, MINING ROYALTIES, ETC.

Resolved,
That (a) any rent payable in respect of any land the property in which is not sep-
arately assessed and charged under Schedule A, or in respect of any easement, shall, if—

(i) the land or easement is used, occupied or enjoyed in connection with any of the concerns specified in Rules 1, 2 and 3 of No. III of Schedule A, or
(ii) the lease or other agreement under which the rent is payable provides for the recoupment of the rent by way of reduction of royalties or payments of a similar nature in the event of the land or easement being used, occupied or enjoyed as aforesaid,
be charged with tax under Schedule D, and in a case where it is rendered in produce of the concern, shall be charged under Case III of the said Schedule D and as if the profits or income arising therefrom were the value of the produce so rendered, and in any other case shall be treated, for the purpose of such of the provisions of the Income Tax Acts as refer to royalties paid in respect of the user of a patent, as if it were such a royalty:
(b) subject to the provisions of Section two of the Provisional Collection of Taxes Act, 1913, any deduction on account of Income Tax made by any person from any payment of rent at any time before the date of the passing of this Resolution, which would have been a legal deduction if the provisions of this Resolution had been in force at that time, shall be deemed for all purposes (including all the purposes of legal proceedings instituted before the said date) to have been a legal deduction to which all the provisions of Rule 19 or Rule 21 of the General Rules, as the case may be, were applicable:
(c) the provisions of Sub-section (2) of Section two hundred and eleven of the Income Tax Act, 1918, shall have effect as if the provisions of this Resolution had come into force on the sixth day of April, nineteen hundred and thirty-four.
(d) in this Resolution—

(i) the expression 'easement' includes any right, privilege or benefit in, over, or derived from land;
(ii) the expression 'rent' includes a rent service, rent charge, fee farm rent, feu duty or other rent, toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money's worth or otherwise, but does not include any of the payments enumerated in Rules 1 to 6 of No. II of Schedule A.
And it is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

ESTATE DUTY.

DUTY IN RESPECT OF ANNUITIES AND OTHER INTERESTS.

Resolved,
That for the purposes of paragraph (1) of Sub-section (1) of Section two of the Finance Act, 1894, where an annuity or
other interest has been purchased or provided by the deceased, either by himself alone or in concert or by arrangement with any other person, the extent of any beneficial interest therein accruing or arising by survivorship or otherwise on the death of the deceased shall be ascertained and shall be deemed always to have been ascertainable, without regard to any expectant interest the beneficiary may have had therein before the death."—[Mr. Chamberlain.]

AMENDMENT OF LAW.

Motion made, and Question proposed,
That it is expedient to amend the law relating to National Debt, Customs, and Inland Revenue (including Excise) and to make further provision in connection with finance."—[Mr. Chamberlain.]

Motion made, and Question, "That the Chairman do report Progress, and ask leave to sit again," put, and agreed to.—[Captain Margesson.]

Resolutions to be reported To-morrow.

Committee also report Progress; to sit again To-morrow.

Orders of the Day — PRIVILEGES.

Ordered,
That Mr. Lansbury be discharged from the Committee of Privileges and Mr. Greenwood be added to the Committee."—[Sir Frederick Thomson.]

The remaining Orders were read, and postponed.

ADJOURNMENT.

Resolved, "That this House do now adjourn."—[Captain Margesson.]

Adjourned accordingly at Three Minutes before Six.